Zeenews Bureau
New Delhi: Finance Minister Pranab Mukherjee on Friday said that the country’s economy is on track to return to a high growth trajectory but the recovery remains halting and slow.
Speaking at the HT Leadership Summit here, The FM said that the challenge is to return to 9 percent growth in next two years from 6.5 percent in the current
year, adding that the growth witnessed in the past few months has been halting and slow.
"We must grow by 9 percent in two years ... I am
optimistic," he said.
Mukherjee also apperead concerned about agricultural growth as it would be negative at minus
two percent as a result of adverse impact of drought
particularly on kharif crop which would be down 15-16 million
tonnes.
Reforms
Pranab also sought broad
political consensus to clear the crucial legislations,
including the labour and the insurance bills, to push forward
the reforms for returning to 9 percent economic growth.
"We don't have the required majority in the two Houses
(of Parliament) to clear the bills ... a broad political
consensus is needed," Mukherjee said.
He said fiscal deficit must be contained and brought back
to 5.5 percent by 2011-12 from 6.8 percent now.
Stressing on fiscal consolidation, he said the target
must be to "bring back fiscal deficit within prudent limits."
Exiting stimulus
The government today said it may
take a call on exiting from fiscal stimulus after reviewing
the economic growth in the second and third quarters of this
financial year.
Finance Minister Pranab Mukherjee would also share his
perception on exit strategy at the G-20 Finance Ministers'
meeting in Scotland, starting from November 6.
"So far we are concerned, I think I shall have to watch
situation for the (economic) progress in the second quarter
and third quarter. Perhaps, I may be in a position, I am not
asserting that position, to articulate it (exit strategy),
sometimes when the d-day will come," Mukherjee said.
On GST implementation
Finance Minister Pranab
Mukherjee today did not rule out the possibility of delay in
introduction of the Goods and Services Tax from scheduled date
of April 1, 2010.
"I am trying to stick to the time schedule, but I will
not be surprised if there is slippage of a few months,"
Mukherjee said at the Hindustan Times Leadership Summit here.
The Finance Minister's comments came on a day when states
finance ministers deliberated on various aspects of GST
structure at a meeting here.
Pranab Mukherjee, a man for all seasons for the Congress Party, also
expressed the desire to quit active politics at the end of
the current term of the UPA government in 2014.
"....when this tenure will be over, I will be 79. Perhaps
that is the time for having a little bit of rest", he said
when asked if he desired to move into the Rashtrapati Bhawan
some day.
First Published: Saturday, October 31, 2009, 09:17