<p>Painting a gloomy picture of the economy, President Pranab Mukherjee on Thursday said the Centre was taking steps to deal with the factors responsible for the slowdown and “some difficult decisions” would have to be taken for a turnaround.<br /><br /></p>.<p>Addressing a joint session of the Rajya Sabha and the Lok Sabha for the first time as the President, Mukherjee said the government was ushering in reforms “for greater transparency, probity, integrity and accountability in governance”. The President reiterated the government’s commitment to enact the National Food Security Bill, adding that the proposed cash-transfer or Direct Benefit Transfer System would help “cut down leakages, bring millions of people into the financial system and lead to better targeting of beneficiaries”.<br /><br />Noting that the real GDP growth of 5.4% in the first half of the current fiscal year was significantly lower than the average of around 8% in the last decade, the President said the slowdown was the consequence of a combination of global and domestic factors. “My government is taking steps to deal with the factors responsible for the slowdown. Inflation is easing gradually, but it is still a problem,” he said.<br /><br />The wholesale prices rose by 6.62% in January, registering lowest headline inflation in more than three years. The headline inflation stood at 7.18 % in December.<br /><br />Mukherjee’s address marked the commencement of Budget session, which is expected to focus on the economic policies of the United Progressive Alliance government. Prime Minister Manmohan Singh too, on Thursday, said the challenge before the government was to “take credible action” to ensure that India remained “least affected” by the global slowdown.<br /><br />In his address, the President said the 12th Five-Year Plan further sharpened the focus on faster, more inclusive and sustainable growth. <br /><br />“The 12th Plan recognises that growth outcomes will depend upon the extent to which we are able to take some difficult decisions. The Plan proposes to consolidate Centrally Sponsored Schemes into a smaller number and increase their flexibility. This will give States the much-needed freedom to experiment and innovate,” he said. <br /><br />The President’s remark came at a time when the GDP growth in 2012-13 was estimated to drop to a decade-low level of 5 per cent against 6.2 per cent in 2011-12.<br />The MPs of the Congress-led United Progressive Alliance thumped desks when President said that the proposed Direct Benefits Transfer System would be a “trend-setter in the use of modern technology to bring benefits to our poorest citizens, especially in rural areas.” <br /><br />Finance Minister P Chidambaram is expected to present the Union Budget for 2013-14 on February 28.</p>
<p>Painting a gloomy picture of the economy, President Pranab Mukherjee on Thursday said the Centre was taking steps to deal with the factors responsible for the slowdown and “some difficult decisions” would have to be taken for a turnaround.<br /><br /></p>.<p>Addressing a joint session of the Rajya Sabha and the Lok Sabha for the first time as the President, Mukherjee said the government was ushering in reforms “for greater transparency, probity, integrity and accountability in governance”. The President reiterated the government’s commitment to enact the National Food Security Bill, adding that the proposed cash-transfer or Direct Benefit Transfer System would help “cut down leakages, bring millions of people into the financial system and lead to better targeting of beneficiaries”.<br /><br />Noting that the real GDP growth of 5.4% in the first half of the current fiscal year was significantly lower than the average of around 8% in the last decade, the President said the slowdown was the consequence of a combination of global and domestic factors. “My government is taking steps to deal with the factors responsible for the slowdown. Inflation is easing gradually, but it is still a problem,” he said.<br /><br />The wholesale prices rose by 6.62% in January, registering lowest headline inflation in more than three years. The headline inflation stood at 7.18 % in December.<br /><br />Mukherjee’s address marked the commencement of Budget session, which is expected to focus on the economic policies of the United Progressive Alliance government. Prime Minister Manmohan Singh too, on Thursday, said the challenge before the government was to “take credible action” to ensure that India remained “least affected” by the global slowdown.<br /><br />In his address, the President said the 12th Five-Year Plan further sharpened the focus on faster, more inclusive and sustainable growth. <br /><br />“The 12th Plan recognises that growth outcomes will depend upon the extent to which we are able to take some difficult decisions. The Plan proposes to consolidate Centrally Sponsored Schemes into a smaller number and increase their flexibility. This will give States the much-needed freedom to experiment and innovate,” he said. <br /><br />The President’s remark came at a time when the GDP growth in 2012-13 was estimated to drop to a decade-low level of 5 per cent against 6.2 per cent in 2011-12.<br />The MPs of the Congress-led United Progressive Alliance thumped desks when President said that the proposed Direct Benefits Transfer System would be a “trend-setter in the use of modern technology to bring benefits to our poorest citizens, especially in rural areas.” <br /><br />Finance Minister P Chidambaram is expected to present the Union Budget for 2013-14 on February 28.</p>
