Steps to stem inflation soon: FM

Addressing the the post-Budget interactive session with CII National Council here, on Wednesday, Finance Minister Pranab Mukherjee said this could help in reining in food inflation. Admitting that major concern facing the government was double digit food inflation, Mukherjee said the government was taking necessary measures in consultation with state chief ministers to bring down inflation in next few months and to ensure better management of food security in the country.

He indicated the government could set up an Expert Committee to evolve a clear cut definition of infrastructure to formulate necessary fiscal incentives to promote infrastructural development.

The finance minister said his objective is not to withdraw the stimulus measures fully until the fruits of economic growth is spread to all sectors of the economy and to all sections of society. “It is his intention to facilitate the spread of growth into all sectors of the economy and all sections of society...Therefore, I have placed growth at the centre of the Budget,” Mukherjee said, adding “the rollback of stimulus has only been partly carried out in the matter of excise duty by 2 per cent which is still lower than the pre-stimulus rate.”

Economic growth has slipped to 6 per cent in the third quarter of this fiscal from 7.9 per cent in the preceding three months.

He exuded confidence that in the fourth quarter, economic growth will pick up again.