Budget measures will help in 6.5% economic growth: Rangarajan

Budget measures will help in 6.5% economic growth: Rangarajan New Delhi: Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan Thursday said all the measures proposed in the Budget for 2013-14 taken together will help the country register a growth of 6.5 percent in the next fiscal year.

"I welcome the budget...I believe that all of this measures (budget initiatives) taken together will give us a growth rate of 6.5 percent next fiscal year," Rangarajan said.

Yesterday, the government's pre-Budget Economic Survey had projected an optimistic 6.1 to 6.7 percent growth in the next fiscal (2013-14) and had made a strong call for cutting subsidises.

Finance Minister P Chidambaram in his Budget speech said the fiscal deficit for the current financial year has been contained at 5.2 percent of GDP, lower than 5.3 percent as was targeted.

Complimenting Chidambaram for his fiscal consolidation efforts, Rangarajan expressed hope that his budget proposals would stimulate investments.

"The Finance Minister has preserved with fiscal consolidation by showing the fiscal deficit for the next fiscal will be at 4.8 percent...He has also proposed measures to stimulate investment, the most important of which is investment allowance," he said.

PTI