No dilution of reform process, avers FM

No dilution of reform process, avers FM

“There is no question of diluting the reform process. It is a continuous process and the government is committed to carry it forward to logical conclusion to fasten growth process,” he said while replying to discussion on budget 2009-10 in the upper house.

While pointing out that every successive government had adhered to reform track ever since the reform process was initiated in 1991, Mukherjee said “there could be differences on degree of action but three has been no deviation from reform path.”

Dwelling on growth prospect of the economy in the backdrop of global recession, he said the prime objective was to put the economy back to path of higher growth as fast as possible.

“That is the reason why we have stepped up expenditure to spur demand in the economy, which in turn would boost growth,” Mukherjee noted.

There are some early indications of recovery in the global economy and the economy is also showing signs of pick-up, though uncertainties remain on several fronts, he pointed out.

While justifying high fiscal deficit at the current juncture Mukherjee said the as part of strategy to kick-start growth budget had allocated funds on such sectors like agriculture and infrastructure, which could provide fast results.

However, he asserted “the government would come back to the path of fiscal prudence without compromising growth momentum as soon as the current economic circumstances permit us to do so.”

“Adherence to fiscal prudence is critical for maintaining a stable balance of payments, moderate interest rates and steady flow of external capital for corporate investment,” Mukherjee noted.

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