The Government will have to overcome constraints to achieve a target of nearly one trillion US Dollar of investment in infrastructure sector. Prime Minister Dr. Manmohan Singh today said that high fiscal deficit is a deterrent for domestic and foreign investments.

The Prime Minister was making his opening remarks at the first meeting of the reconstituted Council of Ministers in New Delhi to share with them a few thoughts on the agenda of the government.

Conscious of the fact that the Government was working against the political calendar, he called for a common understanding to work out mechanisms and remedial measures to tackle these critical deficiencies on a priority basis.

Fuel supply arrangements, security and environmental clearances and financing difficulties were among the constraints in achieving a 12th Plan infrastructure investment target. Dr. Singh said, the growing gap between demand and supply of energy has emerged as a major constraint on development.

The Prime Minister said these issues have a rippling effect across the economy and on the work of many departments.

He recalled the achievements of UPA Government in the last nine years in social and economic policy making, including flagship schemes like MNREGA and Aadhar number, combined with robust economic growth had helped enhanced social sector spending.

The Prime Minister said he has no doubt that, in the time that is available to the government, each one of them will bring the best efforts to complete the unfinished task. Asking senior colleagues to allocate work for junior ministers, Dr. Singh said a number of energetic and younger people have now joined the Council of Ministers and full use of their capacities and capabilities should be made by assigning them substantive tasks.