NEW DELHI: The government is ready to deliver further fiscal stimulus to arrest a slowdown in growth, the finance minister said on Tuesday, but added that fiscal prudence was also a priority. Pranab Mukherjee said stimulus steps taken since late 2008, including cuts in duties and extra spending, were having an impact and the government would take further measures to revive activity, although some sectors such as textiles were badly hit. "What is needed right now is the stimulus to the growth. But at the same time, we cannot lose our sight, that we cannot indulge in fiscal profligacy," Mukherjee told a news channel when asked if more stimulus measures were planned. On Saturday, Mukherjee had said efforts would be made to insulate the economy from the global financial crisis and slowdown, and media reports have said the additional spending could be equal to 0.5-1.0 percent of gross domestic product. Finance Secretary Ashok Chawla told media finance ministry and Reserve Bank of India officials would meet on Saturday to finalise a revised borrowing plan for June, sending bond yields higher on concerns of more supplies. According to its borrowing calendar, the government is expected to borrow Rs 48000 crore ($10 billion) of bonds between May 29 and June 26.
(Source : ET)
No comments:
Post a Comment