New Delhi: Finance Minister Pranab Mukherjee
today said the ongoing economic recovery is still not
broad-based and depends on stimulus measures, even as the
Budget has partially rolled back these steps.
"Recovery continues to be driven by government stimulus
spending, and is not completely broad-based," Mukherjee told a
CII function here today.
Budget 2011 raised excise duty by 2 per cent to 10 per
cent, to partially rollback stimulus measures. The Government
had cut excise duty by 6 per cent, besides service tax by 2
per cent to provide stimulus to the economy hit by the global
financial crisis.
The Finance Minister said his objective is not to
withdraw the stimulus measures fully until the fruits of
economic growth is spread to all sectors of the economy and to
all sections of society.
"It is his intention to facilitate the spread of growth
into all sectors of the economy and all sections of
society...Therefore, I have placed growth at the centre of the
Budget," Mukherjee said, adding "the rollback of stimulus has
only been partly carried out in the matter of excise duty by 2
per cent which is still lower than the pre-stimulus rate."
Economic growth has slipped to 6 per cent in the third
quarter of this fiscal from 7.9 per cent in the preceding
three months.
The Finance Minister exuded confidence that in the fourth
quarter, economic growth will pick up again. He also expressed
optimism that the economy will clock 8-8.5 per cent growth
next fiscal.
-PTI
First Published: Wednesday, March 03, 2010, 23:55