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P Chidambaram to take charge as FinMin?

Last Updated: Wednesday, July 11, 2012 - 10:27

Zeebiz Bureau

New Delhi: Home minister P Chidambaram may take charge of the finance ministry again before the monsoon session begins in early next month, a leading newspaper reported Wednesday.

According to newspaper report, Chidambaram’s return to the finance ministry is a strong possibility.

Meanwhile, Chidambaram said on Tuesday that the government will get the economy back on high growth trajectory.

"I think the Prime Minister-cum Finance Minister is contemplating a number of measures to tighten revenue collection and to control wasteful expenditure. We have already imposed across-the-board cut on non-plan expenditure. That will help," he told reporters.

Identifying savings, investment, fiscal deficit and current account deficit as four fundamental issues that need to be tackled, he said the measures being taken by the government would improve savings and investment. "We will get back to the high growth rate," he said.

On the current account deficit, he said it depends on the international commodity prices and rupee exchange rate as the country imports many commodities it needs.

"Once confidence builds, the exchange rate will stabilise. And we must produce more in the country and depend less on imports ... The current account deficit will come down over a period of time. So, if we can tackle the four issues -- savings, investments, current account deficit and fiscal deficit -- you will see we get back to the high growth path."

The Indian economy is facing slowdown. The economic growth hit a nine-year low of 6.5 percent in 2011-12. Fiscal deficit is seen rising to Rs 5.13 lakh crore or 5.1 percent of the GDP in the current financial year.

Also, current account deficit (CAD) widened to the highest ever level to 4.5 percent of GDP at USD 21.7 billion in January-March period of 2011-12.

With PTI Inputs

First Published: Wednesday, July 11, 2012 - 09:06
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