The Hindu : National : Chidambaram hopeful of 8% growth

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Saturday, Sep 09, 2006

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National

Chidambaram hopeful of 8% growth

Special Correspondent

New Delhi: Confident of maintaining an average eight per cent growth rate for the economy, Finance Minister P. Chidambaram on Friday said inflation would be contained between 4.5 and 5 per cent to prevent further strains on the common man.

Despite rising prices, he felt the common man had been a major beneficiary of the UPA Government's policies, which had yielded more jobs and higher investments.

Addressing a press conference on economic performance during the two-and-a-half years of the UPA regime, he highlighted the positive average growth rate of eight per cent maintained over this period as well as rising tax and non-tax revenues, which would help him contain the fiscal and revenue deficits to within budget estimates. On rising interest rates, he noted that these would act as a "necessary dampener" on personal and housing loans.

He felt the rosy outlook for the economy was a success story that Prime Minister Manmohan Singh could take with him on his visits to Brazil and the United States, while he could do so on upcoming trips to Singapore and Korea.

Mr. Chidambaram also took the opportunity to hint at impatience with the pace of economic reforms by suggesting the need for more urgency in the policy of "gradualism" adopted by this country. "Sometimes I am impatient when I see lost opportunities and would like a little sense of urgency," he said.

Disinvestment

Asked about disinvestment, he said the purpose of it had been misunderstood as private shareholding would provide more accountability and inject a degree of efficiency in performance. "It has been put on hold so there is no reason to debate. It is for the Prime Minister to decide what he wants to do," he said.

Regarding his reported differences with the Planning Commission on social sector needs versus fiscal discipline, Mr. Chidambaram said the sanctity of budget targets had to be maintained.

He had discussed this with the Prime Minister who agreed that the Government had to remain within fiscal discipline targets.

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