Fiscal stimuli to continue till economy stabilises: Mukherjee

Finance Minister Pranab Mukherjee Tuesday said fiscal stimuli packages announced since December last year will continue even though the central bank had indicated a phased exit in its monetary policy update last month.

"For the present, I maintain that the fiscal stimulus will have to continue, to allow its impact to fully run through the economy," the finance minister told the annual Economic Editors' Conference here.

"It is, however, an imperative to come back to the path of fiscal prudence as soon as the current economic circumstances permit us to do so," he said, adding the government was on track to achieve the targets on fiscal consolidation in the medium term.

"Fiscal prudence is critical for maintaining a stable balance of payments, moderate interest rates and steady flow of external capital for corporate investment."

According to the finance minister, the first challenge of the government was to take the economy back to the high growth path of 8.5 to 9 percent per annum, and even beyond, at the earliest and to ensure that it can be sustained for the next few decades.

"For us the growth of income is important but it is more important for resources that it brings in," he said adding these provide the means to bridge various critical gaps that remain in India's development, particularly for the welfare the vulnerable segments.

san/ap/vt

( 240 Words)

2009-11-03-18:19:21 (IANS)

Viewer's Comment

Comments Not Available

More Stories