Growth, fiscal prudence my priorities: Pranab

Growth, fiscal prudence my priorities: Pranab
The Hindu Business Line, May 27, 2009, Page 15

Our Bureau, New Delhi

The upcoming full-fledged Budget of the new UPA Government will focus on promoting economic growth even while taking steps to return to fiscal prudence, the Union Finance Minister, Mr Pranab Mukherjee, indicated here on Tuesday. “I have both priorities — growth as well as fiscal prudence,” he told a TV channel in an interview. Highlighting that the current need was a stimulus to growth, the Finance Minister at the same time maintained that the Government cannot indulge in fiscal profligacy.

Noting that the stimulus packages rolled out by the earlier UPA Government had started to take effect, he stressed the need for faster pace of investment in infrastructure to boost growth. “I do believe that massive investments in infrastructure will bring us back to the growth path,” he added. Asked if the forthcoming Budget would provide fresh fiscal stimulus to arrest the slowdown in the economy, he said, “You will have to wait till the Budget is presented.”

He also declined to comment on issues such as auction of 3G spectrum and disinvestment. A separate ministry for disinvestment is not under consideration, the Minister noted. The country’s GDP growth for 2008-09 may be slightly lower than 7 per cent. “Growth will be close to Central Statistical Organisation’s projection,” he said.

For 2008-09, the CSO advance estimate had pegged growth at 7.1 per cent.