Premature to exit fiscal stimulus: FM

New Delhi, Oct 21 (PTI) India's Finance Minister
Pranab Mukherjee Wednesday ruled out any immediate plans to
exit the fiscal stimulus as the global economy is still to
show robust recovery but was optimistic about domestic
economic growth.

Ahead of the monetary policy review on October 27 by
Reserve Bank, he said he will hold discussions with the apex
bank and would not like to comment on issues like where
interest rates are headed.
"We took that (decision on stimulus). We took some
risks, there is no doubt about it. Unless the world economy
firmly recovers -- signals are strong -- perhaps it would be
premature to think of exit policy. Therefore, I would like to
watch the situation for some more time," Mukherjee told PTI.
He was asked if fiscal concessions given to the
industry to overcome the global financial crisis that started
last year would be withdrawn given the inflationary concerns.
He was optimistic about domestic growth prospects,
saying even the Prime Minister's Economic Advisory Council's
projection was on identical lines. The PMEAC expects the
economy to expand by up to 6.75 per cent this fiscal, while
pegging inflation at near six per cent by March 2010.
"There has been more or less the broad outline that he
(PMEAC Chairman C Rangarajan) has indicated in the economic
outlook for 2009 -10. We are also predicting like that," he
said. MORE PTI TEAM
PMR


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