All measures necessary to boost economy will be taken: Pranab

New Delhi, Feb 19 (PTI) "Constitutional constraints" may
have stopped him from unveiling measures to stimulate the
economy in the interim Budget for 2009-10 but Finance Minister
Pranab Mukherjee Thursday asserted that the Indian Government
will not hesitate to announce some steps if the need arises.

Replying to supplementaries during Question Hour in Rajya
Sabha, upper house of Indian Parliament, he said he could not
announce "many radical" measures in the interim Budget
presented earlier this week due to Constitutional constraints.

"I had Constitutional constraints to take too many
measures involving too much resources because mandate of the
Government is coming to an end and new Government will take
over after elections," he said.

Fiscal correction and monetary changes should go side by
side so that impact on the economy is maximum, he said adding,
his ministry was in consultation with the Reserve Bank of
India for future course of action.

"When I reply to the debate (on the Budget next week), I
may be in a position to indicate some more detailed
information," he said. "All measures necessary to boost
economy will be taken... support which the economy requires
will be given."

On foreign exchange reserves, the Minister said the
nation had enough reserves and "we need not be worried about
that."
Mukherjee said to overcome economy slowdown, which has
been reflected in negative growth in industrial output and
exports, more investments will have to be made in sectors that
will create more jobs.

"In course of time, it will be possible for us to put it
(the economy) on right track," he said.

India is yet to feel the full impact of the global
economic meltdown that has already pushed the US, Japan,
Singapore and Europe into recession.

In December 2008, India -- the world's second fastest
growing economy -- recorded a negative growth in industrial
production and further slowdown in exports.

"I don't know how much time it will take to assess the
situation," the Minister said. "Problem is complicated,
situation is difficult."

"There is no room for complacency," he said.

Mukherjee assured that there was no need to be unduly
concerned about the free trade agreement (FTA) with ASEAN as
it was under negotiations and will take some time for
finalisation.

On the initiative of the US, the G-20 Summit on
'Financial Markets and the World Economy' was held in
Washington in November, he noted. It agreed to discuss the
effects of the crisis and advance a common understanding of
its causes and steps needed to combat it. PTI