The Prime Minister, Dr. Manmohan Singh said that the government will take all possible steps to contain fiscal deficit to 4.8 per cent and to bring sustained improvement in economy. He said exports are picking up with the rest of the world improving its growth.
Making a statement in both the Houses of Parliament, Dr. Manmohan Singh said the country’s economic growth will pick up in the second half of the current fiscal and sought cooperation from all sections to support the government in its efforts to revive the economy. Dr Singh said the government decisions on the stalled projects will start bearing fruits. He said the full effect of the growth-friendly measures will lead to higher growth, particularly in the manufacturing sector. He said the country has the more difficult reforms to do such as reduction of subsidies, insurance and pension reforms, eliminating bureaucratic red tape and implementing Goods and Services Tax. Dr Singh said these are not low hanging fruit and need political consensus.
Dr Singh said the Reserve Bank of India will continue to focus on bringing down inflation. Expressing concern over the sharp decline in exchange rate of rupee, the Prime Minister said that the downward trend was the reaction of the market to certain unexpected external developments. He said the rupee has been specially hit because of large Current Account Deficit (CAD) and some other domestic factors. The government intends to act to reduce the CAD and improve the economy.
Prime Minister held the opposition responsible for the current economic situation in the country. He said the disruptive politics pursued by the main opposition party for the last nine years is responsible for several important legislations being stalled. He was replying to clarifications sought by members on his statement in the Rajya Sabha.
Dr Singh said it has been unheard of in any country where the opposition comes into well of the House and obstructs Prime Minister from speaking. He remarked that the disruption of Parliamentary proceedings, session after session, sends wrong signal to foreign investors. Dr Singh said no doubt, there is a problem but it can be resolved only if the opposition allows Parliament to function. On corruption, he said there are courts and committees to deal with the menace and the opposition should not disrupt the proceedings on this issue. The Prime Minister made it clear that the government has no intention to protect any person, who is found guilty. On missing coal files, Dr. Singh said that he is not the custodian of the files.
