It's the last financial test for India's Prime Minister Narendra Modi - who faces a general election by May.

Hoping to sway voters, in the latest budget announcement his government offered tax cuts and handouts for poor farmers in a new scheme.

(SOUNDBITE) (Hindi and English) INDIAN INTERIM FINANCE MINISTER, PIYUSH GOYAL, SAYING (PARTIALLY OVERLAID WITH SHOT NUMBER 6 AND 7): "PM KISAN (Pradhan Mantri Kisan Samman Nidhi scheme) would not only provide assured supplemental income to the most vulnerable farmer families but would also meet their emergent needs, especially before the harvest season." The Hindu nationalist-led government could lose its majority in the election, according to opinion polls.

Modi's facing discontent over depressed farm incomes and doubts over whether his policies are creating enough jobs.

Friday's budget is hoping to win over not just poor farmers with a $10.56 billion handout but the middle-class too, by raising the income tax threshold and India's vast unorganised workers- by launching a pension scheme.

In the meantime, growth for the current fiscal year is expected at 7.2 percent.

(SOUNDBITE) (English) INDIAN INTERIM FINANCE MINISTER, PIYUSH GOYAL, SAYING (OVERLAYING WITH SHOT NUMBER 17): "We are poised to become…we are poised to become a five trillion dollar economy in the next five years and we aspire to become a 10 trillion dollar economy in the next eight years thereafter." But growth comes at a price.

Borrowing is seen at nearly $100 billion for 2018-19 and India's fiscal deficit targets are now expected to slip from 3.1 to 3.4 percent of GDP.