Published on iGovernment.in, June 9, 2009.
India will achieve an economic growth of at least 7 per cent this fiscal despite the global slowdown, Prime Minister Manmohan Singh said …
… “We cannot spend our way into prosperity. But there is scope to increase the allocations, particularly for infrastructure,” the Prime Minister said, hoping Finance Minister Pranab Mukherjee will address this issue in the upcoming national budget.
“We have the manoeuverability to increase public expenditure.” Manmohan Singh also sought to allay fears that pump priming of the economy by way of stimulus packages announced earlier and measures that will follow in the ensuing months would fuel inflation. “It (expenditure towards infrastructure) will not add to inflation, but to our economic growth.”
According to the Prime Minister, fiscal deficit had increased sharply but even then India had enough resources to spend on flagship programmes thanks to the average annual growth of 8.6 per cent achieved during the past five years.
He also said that his government was deeply committed to the agenda listed in the President’s address, adding flagship programmes will be further strengthened and public delivery system made more transparent.
“Much ground has been covered; a lot more has to be done.” (full text).