India's finance minister promises to curb deficit
11 July 2014 Last updated at 08:55 BST
India's finance minister Arun Jaitley declared that India "cannot spend beyond its means" when presenting the new government's first budget.
He pledged to maintain the previous government's target of keeping the fiscal deficit to 4.1% of gross domestic product.
Defence was one of the few areas to see a significant growth in spending with a 12% rise to nearly $40bn (£23bn).
BBC Business Reporter Shilpa Kannan reports from Delhi.