New Delhi, Feb 28 (IANS) Finance Minister Pranab Mukherjee presented the federal budget for 2011-12 Monday, promising not only to address the twin issue of curbing inflation and pushing growth but also tackling corruption and lack of transparency in governance.
Stating that India had bounced back after the global financial crisis with broad-based growth, he said inflation was a matter of concern, especially food prices, though it had dipped from over 20 percent to around 7 percent now.
‘We are reaching an end to a remarkable year with high growth and many challenges. Our growth in 2010-11 has been swift and broad-based. Economy is back to pre-crisis growth trajectory,’ Mukherjee said in his opening remarks.
‘In the medium term, our three priorities of maintaining high growth trajectory, making development more inclusive and improving our institutions remain relevant,’ the minister added.
This is the sixth such exercise for the 75-year-old politician. He tabled three budgets between 1982 and 1984. The one unveiled Monday was the third successive one for the United Progressive Alliance (UPA) government.
Expectations were high from both households and the corporate sector as this budget is being presented against the backdrop of high inflation, fluctuating industrial growth, erratic exports and a general perception that the reform process has retarded.
‘I do not foresee resources being a major constraint, at least in the medium term,’ Mukherjee said, referring to the money needed to address the larger agenda of growth, social programmes and infrastructure development.
He said the farm sector had shown a rebound with 5.4 percent growth, industry was regaining its earlier momentum and services continued to grow at double digits. He added that fiscal consolidation too was impressive.
Following are the highlights of his speech:
* Economic growth of 8.75 percent this fiscal, 9.25 percent in 2011-12
* Gap between wholesale and retail prices not acceptable
* Setting up independent debt management office
* Public debt management bill to be introduced in parliament
* Seek Lord Indira’s blessings for good monsoon
* Introduction of goods and services tax will improve compliance
* Bill will be introduced for goods and services tax in current session
* Government committed to retaining 51 percent in public sector enterprises.
* Foreign direct investment policy being liberalised
* Current account deficit at 2009-10 levels
* Corruption a problem we have to fight collectively
* Development needs to be more inclusive
* Stronger fiscal consolidation needed
* Setting tone for newer, vibrant economy
* Economy has shown remarkable resilience to external and internal shocks
* Economy back to pre-crisis trajectory
* Set pace for double digit growth
* Total food inflation fell to less than 9 percent in January
