October 26, 2010 6:28 PM

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Economy poised to grow above nine per cent : Pranab

Finance Minister Pranab Mukherjee said today that economy will grow by 8.25 to 8.75 per cent this fiscal and will return to an average growth rate of 9 per cent soon. Addressing the annual Economic Editors Conference in New Delhi, he said, economic growth would exceed 9 per cent in near future. Mr Mukherji said, economic recovery is broad based with growth in all the three sectors of Industry, Services and Agriculture. Expressing satisfaction over the economic scenario, Finance Minister said, the recovery also necessitated a partial roll back of fiscal stimulus. He also said, the fiscal deficit would come down to 5.5 percent this fiscal. Stating that gross tax revenue has grown at a robust pace so far, Mr Mukherji said, proceeds from spectrum sale as also disinvestment would help meet the fiscal deficit target. He added that the gross tax revenue grew by 27.3 per cent so far this fiscal as opposed to negative growth rate in the same period last fiscal. On inflation, the minister said that food prices were the main driver, while he also expressed concerns on rising rupee having implications on the country's exports. He said that strong domestic demand and robust investment climate had led to surge in capital inflow. Our correspondent reports that the finance minister laid emphasis on financial inclusion and gave the details of the ambitious programmes launched for the purpose.

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