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STORY: India's government on Wednesday (February 1) unveiled its budget for the coming year.

And it features one of its biggest jumps in capital spending in the past decade.

Ministers also said the fiscal deficit would fall, as the government tries to create jobs while maintaining financial discipline.

Prime Minister Narendra Modi's party, which faces elections in key states this year and a national vote in 2024, has been under pressure to create jobs for the country of 1.4 billion people.

Many have struggled to gain employment - despite it being one of the world's fastest-growing major economies.

Nirmala Sitharaman is India’s finance minister:

“The budget takes the lead once again to ramp up the virtuous cycle of investment and job creation. Honourable speaker sir, the capital investment outlay is being increased steeply for the third year in a row by 33% to 10 lakh crores."

That figure equates to around $122 billion.

Sitharaman also announced total spending will rise 7.5% to around $550 billion in the next fiscal year starting on April 1.

And the government will target a budget deficit of 5.9% of GDP for 2023/24, down from 6.4% for the current year.

Since taking office in 2014, Modi’s party has ramped up capital spending, while wooing investors through lower tax rates and labour reforms, and offering subsidies to poor households to clinch their political support.

However, a lack of jobs for young people, and meager wages for people in work remain problems.

Modi remains projected to win the general election.