India unveiled spending of billions of dollars to create new jobs and satisfy key coalition partners in the first budget by Prime Minister Narendra Modi's government after an election setback, aiming to win back voters and retain political support, Paralel.Az eports citing Reuters.

Among a host of tax changes were an increased levy on equity investments to allay concerns of an overheating market, but also lower taxes for foreign companies, in a bid to lure investment.

The outlays included $32 billion for rural programmes, spending of $24 billion over five years to create jobs, and more than $5 billion for two states ruled by coalition partners, Finance Minister Nirmala Sitharaman said on Tuesday.

"In this budget, we particularly focus on employment, skilling, small businesses, and the middle class," she said, adding that subsequent budgets would build on these focus areas.

Despite the new spending, India cut its fiscal deficit target to 4.9% of gross domestic product in 2024-25, from 5.1% in February's interim budget, helped by a large surplus of $25 billion from the central bank.

The government marginally reduced gross market borrowing to 14.01 trillion rupees.