March 16, 2010 7:22 PM

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More steps will be taken to control inflation: Pranab assures RS

The Finance Minister, Mr Pranab Mukherjee today assured the Rajya Sabha that more steps will be taken to control inflation as it continues to remain an area of concern. He cautioned it may go to double digit in March. <br/><br/>Replying the debate on general budget in the House, Mr. Pranab Mukherjee said that government will ensure that the inflation does not eat away the benefits of growth. He said that he has tried to ensure that the momentum of growth is maintained and expressed hope that growth will cross over to double digit in the next three years. <br/><br/>The Finance Minister said, several steps have already been taken to control food inflation. They include removing the supply bottlenecks and supply of 4 million tons of grains from the buffer stocks in the open market to bridge the gap between demand and supply. Besides this, the Public Distribution System is also being further strengthened so that vulnerable and disadvantaged sections of the society are not affected. <br/><br/>He also said that the meeting of the core group of the Chief Ministers, following recent conference of Chief Ministers, is also being convened soon to work out a more comprehensive strategy to deal with price rise. Mr Muherjee said his other priorities while preparing the Budget were controlling the fiscal deficit and measures to achieve this. <br/><br/>Justifying the fuel price hike, he said that the volatility of the international market makde this step necessary. Mr Mukherjee said that none of the excise or duty hikes announced are new and they were in place before the economic crisis. Expressing confidence on controlling fiscal deficit, he said that it has been pegged at 5.5 per cent. Dismissing the opposition charge, Mr. Mukherjee said a multi-pronged strategy is in place to enhance agricultural productivity. <br/><br/>Regarding adoption of 60 thousand villages for the cultivation of pulses and oilseeds, Mr. Mukherjee made it clear that funds will not be a constraint. He elaborated that a small amount has been earmarked as the scheme is yet to take off. The house later returned the Appropriation bill for the year 2010-11. It has already been passed by the Lok Sabha.<br/><br/> AIR Parliamentary correspondent reports while participating in the debate, both ruling and opposition party members urged the government to give greater focus on agriculture sector.<br/><br/> They also pointed out to complaints of corruption in NREGA demanding more effective monitoring of the programme. While the opposition members criticized the government for its alleged failure in tackling the food inflation, the ruling alliance members hailed the budget proposals saying it will spurt growth and generate employment.<br/>

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