New Delhi: The two stimulus packages given by the government to boost the economy have started working and the economic growth in the current year is likely to be 7%, External affairs minister Pranab Mukherjee, who is also holding the charge of the Finance Ministry, said.
“The two stimulus packages have started working...that has been reiterated by the Reserve Bank governor while announcing the (third-quarterly review of the) credit policy,” Mukherjee said after his first meeting with minister of state for finance P.K. Bansal and senior officials of the ministry at North Block.
Mukherjee took charge of the Finance Ministry as Prime Minister Manmohan Singh, who was looking after the finance portfolio, is recuperating from a heart surgery at the All-Indian Institute of Medical Science.
The minister was briefed by the senior officials of the finance ministry on various issues, including preparation for interim budget which is to be presented in Parliament in February.
As regards economic growth, Mukherjee said, “though the economy will not grow at 8.9 or 8.8%, it will grow around 7%. There is no doubt about that ... Indian economy is sound and will bounce back ”.
The RBI in its review of the credit policy projected a growth rate of 7% for the current fiscal year, down from 7.5 to 8% estimated earlier.
On his priority as in-charge of the Finance Ministry, Mukherjee said, “My first priority is to get the vote on account passed. That is the top most priority and it is also a constitutional requirement.”