New Delhi: Finance minister Pranab Mukherjee on Saturday exuded confidence the economy would soon break the double-digit growth barrier and said the stimulus measures will not be fully withdrawn until a robust recovery is achieved.
Mukherjee, however, remained concerned over high food inflation and the ambiguous nature of recovery in exports due to the uncertainty prevailing in the developed economies.
“...I feel the fundamentals of the economy are strong. The positives from our recent performance outweigh the negatives, so that one can hope to see the economy breaking the double-digit growth barrier in the very near future, which is essential for reducing poverty in the country,” Mukherjee said in his address to the 82nd AGM of Ficci.
The finance minister has partially rolled back stimulus sops in the Budget by hiking excise duties by two percentage points across the board, and enhancing tax rates on petroleum products.
On a roll-back of the emergency measures to prop up the economy, the minister said, “I am committed to fiscal consolidation in the interest of the economy’s capacity to sustain growth in the medium to long term.
“But it can be fully effected when the recovery in private demand - both consumption and investment -- is sufficiently robust,” Mukherjee said.