PM to review economy with Plan panel tomorrow

Last Updated: Tuesday, January 5, 2010 - 21:12

New Delhi: Prime Minister Manmohan Singh will meet Planning Commission Deputy Chairman Montek Singh Ahluwalia and other members tomorrow to take stock of the economy and discuss steps to check the rising food prices.

"The Prime Minister would meet all members of the Planning Commission to assess the state of the economy," Planning Commission member Abhijit Sen said here on Tuesday.

The demands from various ministries for significant rise in the gross budgetary support to meet their social sector expenditure are also likely to figure in the discussions, the sources said.

While the economy has shown firm signs of recovery, food inflation, which touched the decade`s high of close to 20 per cent, continues to remain an area of concern for the Government as well as the Reserve Bank.

As Finance Minister Pranab Mukherjee began his pre-buget meetings on Tuesday, the Government is faced with a difficult situation of a large fiscal gap and increasing demands for the different flagship schemes like job guarantee in rural areas and rural health mission.

The three stimulus packages provided to the industry to combat the global financial crisis is expected to push fiscal deficit to 6.8 per cent in the current year from 6.2 per cent in 2008-09.

PTI



First Published: Tuesday, January 5, 2010 - 21:12

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