Aim is to tame inflation, contain fiscal deficit and cut current account deficit
Finance Minister Pranab Mukherjee on Wednesday asserted that the government would successfully overcome the current economic challenges as its efforts were aimed at taming inflation, containing the fiscal deficit and reducing the current account deficit (CAD) to an acceptable level.
“I have full faith in the resilience of the Indian economy and am sure that we will be able to overcome the current economic challenges successfully as we have done in the past, many times …,” Mr. Mukherjee said addressing IES (Indian Economic Service) probationary officers at his North Block office here.
The Minister's statement, which referred to the economy also facing “some challenges” due to the ongoing crisis in the Eurozone, came on a day when the rupee plunged further and touched a new low at 56.22 before recovering to 56 against the U.S. dollar at close following multiple interventions by the Reserve Bank of India.
In the present-day environment at home and abroad, the Indian economy's resilience will be put to a severe test in the weeks ahead as it is currently faced with a triple whammy. While an increasing trade gap, coupled with a massive outflow of forex owing to sell-off by foreign institutional investors on the bourses — as a consequence of the Greek debt crisis — has been leading to a widening CAD, the rupee has been in free fall mode ever since.
Obviously referring to this dilemma on diesel price hike and other reforms, Mr. Mukherjee told the IES officers that “as a ruling party we have to carry all partners with us and that's why it sometimes takes little longer. But at the end we are able to take decisions and implement them.”
Keywords: Forex, Indian Economic Service, Pranab Mukherjee, price rise, inflation, current account deficit, Indian economy, rupee value
without states involvement in these meetings like in handling terrorists problems we do not see major change by goading only the central government ministries and heads.Many projects in the states even in house building for the people are stagnant due to delay in granting building permissions due to vearious reasons including corrupt rules and practices. These should change without intervention of team anna or Lokpal acts.65 yrs have gone with full independence in every section of the society without showing the needed results in public life.we should recognize the need for certain restrictions in all these independent methods of living.survival of the fittest rule should change into survival of all groups so that struggle for existence would become a pleasant time for living.
How long do we have to carry on with Pranab da who has lost his mental
balance, it seems. Instead of removing subsidy on gold import, he
taxes middle class through petrol hike. Instead of removing tax
subsidy to the corporates, he plays with the lives of middle class.
Petrol hike is essential but it didn't have to be done this way. Lacs f rupees of excise duty can be removed to balance out instead of affecting all round price increase with this mad decision. Pranab Mukherji still believes that he is a magician and a good economist. He is none. He is miserably failing on all fronts. But what to do. We have that stone wall of a Prime Minister who has no authority to check anything. Why should he bother. He is in his Autumn,
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