6.5% growth in 2013-14 is reasonable, says Montek Singh
Pinning hope on government's resolve to get rid of impediments to growth, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the 6.5 per cent economic growth projection for next fiscal is reasonable.
"... if you have taken corrective steps needed to get rid of impediments to growth, projecting 6.5 per cent is not too much...The 6.5 per cent economic growth, is not that unreasonable", Ahluwalia told to a news channel.
According to him, registering 6.5 per cent economic growth would be achievable in the backdrop that India's last decade long term average GDP growth is 7.3 or 7.4 per cent.
Commenting on the Union Budget whether this is the right response to the challenge economy is facing at present, he said, "..the biggest challenge right now is huge micro imbalance, very large fiscal deficit which is mirrored in balance of payment by large current account deficit. Now we want to get that in balance, not get the risk of running out of foreign inflows, is important to reduce the fiscal deficit. That big message the budget does have."
On whether Finance Minister went for a big cut of around Rs 92,000 crore in Plan expenditure to reduce the current financial year's fiscal deficit to 5.2 per cent of GDP, he said this happened because of strict enforcement of rules by the Finance Minister.
"There are rules that say that only spend certain proportion of what you are going to spend in year as a whole in the last three months. Using that (rules), basically
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