ID :
48247
Sat, 02/28/2009 - 20:00
Auther :
Shortlink :
https://www.oananews.org//node/48247
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Economy to grow by around 7 pc in FY'09, hopes FM
New Delhi, Feb 28 (PTI) Revival in steel and cement
sectors and ample funds available with states for spending
Saturday gave the centre the confidence that the country will
grow by around 7 percent in the current fiscal.
For the first nine months of this fiscal, the economy
grew by 6.9 per cent and the government's advance estimates
pegged the growth at 7.1 per cent for the entire 2008-09.
Replying to a question on economic growth, Mukherjee told
Karan Thapar in an interview for to private television channel
CNN-IBN, "All these are estimates and of course between 6.9
and 7.1 (there is) not much difference, but I do hope when the
final figures come out it would be around seven per cent."
The economy grew by 5.3 per cent in the the third quarter
of current fiscal.
To a query whether market is losing confidence due to
slackening growth, he said, "I don't agree with your
(interviewer's) contention." He said exact numbers could be
known only after it becomes clear how will economy respond to
stimulus packages.
"All these things...have to be seen for example slow
revival of steel and cement industry has started, housing
industry have been made adequate allocations, states have been
provided funds, they themselves have good cash reserves of
about Rs 91,000 crore, quite a few of them would like to spend
a substantial quantum of money this year... all this would be
available after March 31," he added.
"These are speculation, estimates...How will economy
respond to stimulus package, how is it going to respond to the
various steps we have taken in the fiscal year."
When asked whether measures to stimulate economy in
the Interim Budget were taken under pressure, he said, "No,
this is a normal practice. Every FM does (it)."
"I have followed exactly the same pattern as every other
FM does. I have not changed an iota of the direct tax. I have
not imposed any new tax to mop up additional resources, that
is the constitutional propriety," he said.
The Finance Minister had cut service tax, excise duty by
two per cent each, besides extending four per cent reduction
in excise duty beyond this fiscal to propel the slowing down
economy.
He said,"(The) government is continuing... as and when
situation would demand we would respond. Situation
demanded...we responded, it is still unfolding and we would
have to respond in future." PTI
sectors and ample funds available with states for spending
Saturday gave the centre the confidence that the country will
grow by around 7 percent in the current fiscal.
For the first nine months of this fiscal, the economy
grew by 6.9 per cent and the government's advance estimates
pegged the growth at 7.1 per cent for the entire 2008-09.
Replying to a question on economic growth, Mukherjee told
Karan Thapar in an interview for to private television channel
CNN-IBN, "All these are estimates and of course between 6.9
and 7.1 (there is) not much difference, but I do hope when the
final figures come out it would be around seven per cent."
The economy grew by 5.3 per cent in the the third quarter
of current fiscal.
To a query whether market is losing confidence due to
slackening growth, he said, "I don't agree with your
(interviewer's) contention." He said exact numbers could be
known only after it becomes clear how will economy respond to
stimulus packages.
"All these things...have to be seen for example slow
revival of steel and cement industry has started, housing
industry have been made adequate allocations, states have been
provided funds, they themselves have good cash reserves of
about Rs 91,000 crore, quite a few of them would like to spend
a substantial quantum of money this year... all this would be
available after March 31," he added.
"These are speculation, estimates...How will economy
respond to stimulus package, how is it going to respond to the
various steps we have taken in the fiscal year."
When asked whether measures to stimulate economy in
the Interim Budget were taken under pressure, he said, "No,
this is a normal practice. Every FM does (it)."
"I have followed exactly the same pattern as every other
FM does. I have not changed an iota of the direct tax. I have
not imposed any new tax to mop up additional resources, that
is the constitutional propriety," he said.
The Finance Minister had cut service tax, excise duty by
two per cent each, besides extending four per cent reduction
in excise duty beyond this fiscal to propel the slowing down
economy.
He said,"(The) government is continuing... as and when
situation would demand we would respond. Situation
demanded...we responded, it is still unfolding and we would
have to respond in future." PTI
