Economy should grow at least 6.7% in ’09-10’

Economy should grow at least 6.7% in ’09-10’
Times of India, June 9, 2009, Page 21

TIMES NEWS NETWORK

New Delhi: With some sectors of the economy still reeling under the impact of the global economic downturn, deputy chairman of Planning Commission Montek Singh Ahluwalia on Monday said that the plan panel is discussing with the finance ministry the possibility of raising planned outlay for some sectors in the coming Budget.

After being reappointed as plan panel chief, Ahluwalia said: "What we are looking at is, is there a case for doing a little bit more (in plan expenditure) in some sectors."

With economic conditions turning better, he was optimistic that the economy should record at least 6.7% growth rate this fiscal, the same witnessed in 2008-09.

The plan panel chief said basically expenditure absorption capacity of different sectors was being looked at for making "some" recommendations. "Obviously how much can be done depends on what you regard as a tolerable overall fiscal deficit, and that is one of the key issues being discussed with the finance ministry at this moment," Ahluwalia said.

Indicating major expansion of flagship programm es, the deputy chairman argued in favour of raising resources through part disinvestment of public sector undertakings (PSUs).

"What I can say is we should at least be aiming at the same growth as achieved last year and I think we could do a little better," he said.

Many people say 7% growth is not impossible this fiscal and some believe it could be better, he said, adding that a lot depended on how the global economy behaves in the second half of this fiscal.

Accepting that the entire 11th plan may need a major change after the mid-term review, Ahluwalia said that the corrective measures would be taken after considering global economic trends and their likely impact on the Indian economy.

He said new initiatives in the pipeline are being indicated by the government at various fora and depending on the absorptive capacity of various programmes and their likely impact on the recovery process, the government should consider additional allocation. Such increases will have to be kept within the acceptable fiscal deficit limits, he added.

Speaking on the proposed food security Bill, Ahluwalia said it was very important to ensure availability of food and for this the country needed to increase productivity. "We will soon to have an Act to ensure food security and the objective is to secure food requirement of the weakest sections of our society. But in the larger perspective, we require assurance of adequate food supply and its affordability," Montek Singh Ahluwalia said.