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Need to balance economic growth and fiscal deficit: Mukherjee
December, 31st 2009

Union Finance Minister Pranab Mukherjee said here on Wednesday that India needs to strike a balance between economic growth and cutting fiscal deficit.

Interacting with media here, Mukherjee said: "We shall have to strike a balance between the requirement of the economy and also the capacity of the economy to bear this level of fiscal deficit."

The country's fiscal deficit is estimated at 6.8 percent of the Gross Domestic Product for the current fiscal, higher than the previous year's 6.2 percent, as the government cut tax rates and boost spending.

Commenting on the 13th Finance Commission's report Mukherjee said the report would be reflected in the budget session.

"Tabled in the Parliament as usual there is a system. It will be getting reflected in the budget after that," Mukherjee said.

The Finance Commission's report is very important as it includes several reforms in both direct and indirect taxes.

The Government has deferred the rollout for a Direct Taxes Code till 2011 but the Goods and Services Tax, which is the proposed reform in indirect taxes, will be released in April 2010.

The economy grew at 6.7 percent in 2008--09, slower than nine percent or more in the previous three years.

 
 
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