Govt to address slippages in economic parameters in upcoming Budget: FM

Finance Minister says, the Government will have to address the slippages in economic parameters in the upcoming Budget. Addressing 84th Annual General Meeting of FICCI in New Delhi, Pranab Mukherjee warned that the months ahead are difficult as growth rate may fall below 7.5 per cent. He said there are also concerns on the central government finances as their performance during the first half on the fiscal front poses some risks in both receipts and expenditure estimates. 

Claiming that India's growth fundamentals are strong, Mukherjee said they look more attractive in a world challenged by problems of confidence and lack of growth. Industrial production is also showing signs of a pick-up. While the services sector has retained its growth momentum, agriculture sector is likely to provide a buffer for the moderation in growth rate in the current fiscal.

Mukherjee, however, said that the government has to be alert to shape the required policy responses, reform systems, improve the regulatory framework of the institutions to make most of the opportunities come India's way. The Finance minister noted that there have been a host of policy measures, including incremental changes in easing capital controls, making available a framework for pooling of debt finances for infrastructure and various other measures which lend credence to the commitment to economic reforms.