Hyderabad: Prime Minister Manmohan Singh said on Friday the Indian government does not expect the flood fury in South India to have any inflationary consequences on the stimulus package announced by the government.
Responding to reporter’s queries in Hyderabad after an aerial survey in flood affected areas of Andhra Pradesh, Singh said he does not see the need for reassessing the stimulus package announced earlier by the finance ministry and said it will continue.
Further, saying that it was too early to assess the impact of floods and drought on the GDP growth, the Prime Minister said the government expects the country to report a GDP growth rate of 6.3% to 6.5% during the current fiscal.
The Prime Minister, who has announced to release an assistance of Rs 1,000 crore immediately for the relief works in Andhra Pradesh, rubbished the allegations that the Centre was not releasing adequate funds to the neighboring Karnataka, worst-hit among the two Southern States, forced by political compulsions. He said he would not entertain any politics when it comes to natural calamities as long as he was the Prime Minister.
Refusing to comment on whether the flood fury in AP was caused by human errors in release of excess water from the reservoirs, the Prime Minister, however, said such calamities necessitate the need to strengthen the infrastructure or national disaster management system.
The Prime Minister said a joint assessment by the Centre and state on the damages in Andhra Pradesh would be made once the state government submitted a detailed memorandum.