No slowing down of reforms,govt ready with key legislations:FM

New Delhi, Jul 27 (PTI) Allaying apprehensions that
reforms have hit a roadblock, Indian Finance Minister Pranab
Mukherjee on Wednesday said the government proposes to take up
several economic legislations in the forthcoming session of
Parliament.
"We have taken important measures like finalising Food
Security Bill, Mines and Minerals Development and Regulation
Bill. Already in the last session I have introduced bills
including Insurance Bill, Banking Laws Amendment Bill and
Constitutional Amendment Bill for GST," he told reporters.
The Monsoon Session of Parliament, which is expected to
be stormy, will begin on August 1.
Mukherjee also exuded confidence that economy would
shortly return to the pre-global crisis growth level of 9 per
cent, though high inflation continue to be area of concern.
The Reserve Bank, he indicated, could also go in for
another hike in key policy rates to check rising prices.
Asked if he was surprised by the sharp hike in key
policy rates by RBI yesterday, the Minister said, "I cannot
say it surprised me. It is substantial no doubt, but given the
situation it was necessary.
"I don't think it is end of the tunnel (hike in interest
rates). It is not like that. It does not happen (that way),"
he said asserting that inflation at 9.4 per cent was
reasonably high and "unacceptable".
Answering questions on trust deficit between the
government and the industry, Mukherjee said, "I don't think
there is any trust deficit. If there is a trust deficit,
always through dialogue and discussion we can remove them and
by taking appropriate measures.
Mukherjee further said that it was not correct to say
that corporates are being subjected to scrutiny by everybody.
"Sometimes the scrutinies are routine...can you tell
me any country in the world where the revenue department does
not scrutinize the balance sheet (and) activities of the
various sectors of the economy, particularly the corporate
sector," he said while replying to questions relating to
scrutiny of corporate by multiple government agencies.
The Finance Minister is expected to meet the captains
of the industry on August 1. The meeting comes after the
decision of the RBI to raise key interest rates by 50 basis
points, a decision which evoked sharp reaction from the
industry chambers.
The Reserve Bank's decision, according to industry
chambers, would hurt investment and growth. The industrial
growth is already showing signs of slowdown.
Referring to growth prospects, Mukherjee said, "I am
quite confident that Indian economy would be in a position to
come back (to pre-crisis level)."
India was growing at over 9 per cent before the global
economic crisis pulled down the rate of economic expansion.
The economic growth rate in the current fiscal, according to
the Reserve Bank projections, may moderate to 8 per cent from
8.5 per cent during 2010-11.
Admitting that inflation at 9.4 per cent in June was
"reasonably high and unacceptable", Mukherjee said it was a
global phenomenon and the whole world was reeling under the
impact of rising prices of fuel and other commodities.
The government and the central bank are taking steps
to check price rise, he said, adding "I am optimistic that
measures taken by the RBI by adjusting the crucial rate will
have impact and inflation will come down". PTI NKD
ASR