Budget exceedingly good, a job well done: PM

Hopes for a 7.5 percent growth, pays tribute to the "resilience of economy"

PTI | February 26, 2010



Terming as "exceedingly good", Prime Minister Manmohan Singh on Friday said the Budget would help the economy to return to nine per cent growth while allaying the fears that it would fuel "inflationary" expectation.

"A job well done" was how Singh summarised Finance Minister Pranab Mukherjee's Union Budget for 2010-11, presented in Parliament.

"You must look at the total picture emerging from the budget. The net revenue gain for the Finance Minister is only Rs 20,000 crore. In an economy as large as India, this resource mobilisation effort and balance should not trigger any inflationary expectation. At the same time it gives the muscle needed.

"The Finance Minister has not called back to the pre stimulus excise duty rate. He has still exercised moderation signalling the economy that you cannot have all things together," said Singh, who in the 90s had donned the mantle of Finance Minister in the Narasimha Rao government.

Defending Mukherjee's proposal to hike the basic duty on crude and petroleum products besides effecting a one-rupee per litre increase on petrol and diesel, Singh said, "the economy has the capacity to absorb this order of adjustments in excise duties and customs duties without generating a wholesale inflationary spiral."

"Well, I think Finance Minister has mentioned these duties were reduced during a period when petroleum prices had gone up to USD 112 per barrel. Now petroleum prices are much lower..," the Prime Minister said.

On the postponement of the Direct Tax Code (DTC), he maintained that "on the whole" it does not present a problem.

"....Simplification on DTC must be source of strengthening the growth impulses, but the DTC, which was circulated has, I think, generated certain apprehensions in the business community...," he said.

The Prime Minister also assured DTC will not be imposed till "all the apprehensions that have been expressed by the business community are taken care of."

On the introduction of the Goods and Services Tax, Singh said it requires a consensus and all states have to be on board for it to be implemented.

"I think we cannot move the reform of having a GST. I sincerely believe we cannot move very far in the direction of having a GST... Sincerely hope, that during this year we will work towards all these concerns," Singh said.

The Prime Minister said despite a negative agricultural growth, the economy will this year grow by at least 7.2 per cent.

"In my view, it will grow 7.5 per cent. That is a tribute to the resilience of the economy, to the manufacturing sector, revival of export momentum," he said.

He asserted that as far as agriculture was concerned, the Finance Minister has zeroed in on a four-fold strategy of doing everything possible that can be done to increase productivity.

On fiscal deficit, he said, the Finance Minister has committed the government will cap the fiscal deficit at the Centre and states at 68 per cent by 2014-15.

"This is the recommendation of the Finance Commission. We are endorsing the roadmap that has been taken into account by the Finance Commission in presenting its report," he added.

Comments

 

Other News

Global South: Health cooperation needs institutions to make solutions scalable

September 12 marks the International Day for South-South Cooperation, commemorating the 1978 Buenos Aires Plan of Action (BAPA). Forty-eight years later, its central proposition remains relevant: countries of the Global South can draw on their own knowledge, experience and innovations to address shared d

Reading the mind of Xi Jinping

As India prepares to host the 18th BRICS Summit this weekend, and as prime minister Narendra Modi is set to hold a bilateral meet with president Xi Jinping, China’s growing global influence and the changing dynamics of India-China relations will be under focus. But to understand where China is head

BRICS at 20: From economic weight to global influence

This year marks 20 years of BRICS, with India set to host the grouping’s leaders’ summit this weekend. The anniversary offers an opportune moment to assess BRICS’ growing importance at a time when the effectiveness of global governance and the credibility of multilateralism are under in

Former president Ram Nath Kovind on some of his unforgettable journeys

Triumph of the Indian Republic: My Life, My Struggles By Ram Nath Kovind Rupa Publications, 400 pages, Rs 795   All our presidents so far stand out, each for a different reason. Ram Nath Kovind, the 14th president of India, from 2017 t

Uday Kotak on history, Indian economy, growth and more

Pathbreakers: How 10 Visionary Leaders Transformed India by award-winning journalists  By Sucheta Dalal and Debashis Basu Rupa Publications, 304 pages, Rs 695  

₹5,000 crore saved from suspected financial fraud

In a significant gain for citizen protection in the digital economy, the Department of Telecommunications (DoT) has helped prevent suspected cyber fraud losses of more than ₹5,000 crore through its Financial Fraud Risk Indicator (FRI) within fifteen months of its launch on May 22, 2025. This money did

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter