'Govt to talk to banks to cut rates, increase finances'

"Industry and business have been hurt by the cost of finance and its easy availability... the cost and the speed with which finance can be accessed remains a matter of concern.

"One of the first steps I propose to take is to meet bankers and get them committed to a more benign plan of action," Mukherjee said at his first press conference since taking charge as Finance Minister earlier this week.

Listing out the concerns and constraints being faced by the economy, he said there was no alternative to pushing up growth in tandem with employment for which the government is willing to increase its borrowings.

"Let me say unambiguously that we are committed to restoring growth and employment and that would not have been possible without increased spending funded by incremental borrowing. This would need to be further continued in 2009-10.

"However, we are equally committed to the process of fiscal consolidation over a period of say 2 to 3 years," he said exuding confidence that early return to recent growth performance would help attain fiscal prudence.

Stating that government would present budget in the first week of July, Mukherjee said consultations for the purpose would help shape up short-term and medium-term vision and strategy for India's economic growth.

On the stimulus package, Mukherjee said the government is assessing the impact of three packages, announced in December, January and interim Budget to boost economic growth.

The government has cut excise duty by six per cent, service tax by two per cent, in addition to announcing sector specific measures to arrest the impact of global financial meltdown on Indian economy.

However, the economy continued to witness a slowdown with industrial production figures in March showing a contraction of 2.3 per cent and exports falling since October.

"Sustained stimulus to growth can be harnessed by the next round of economic reforms," he said, adding that the government has a broad plan of action to restore economic growth.

"I will get additional inputs when I have my pre-budget consultations with different stakeholders," the Finance Minister said, pointing out that suggestions would be distilled and incorporated in action plan.

The Finance Minister said the government will present its vision and approach for the next five years in the coming Budget.