India will require to adjust prices of petroleum products to bring down subsidies, Prime Minister Manmohan Singh said in an interview to the state broadcaster on Friday after his government presented the Union Budget for 2012-13 to Parliament.
“We have to bite the bullet,” the Prime Minister said on proposals for reduction and control of subsidies in the Budget
“When it comes to taking tough decisions, we will consult all allies,” he said.
Singh said protecting the growth rate, which is better than most countries, is the biggest achievement. “The challenge is to get the growth rate back to 8 per cent.”
Singh also said the growth rate of the economy is a major achievement in the past three years.
“The government is committed to ensuring faster, sustainable and equitable growth, that is the challenge,” he said.
In his budget speech, Finance Minister Pranab Mukherjee said the government plans to keep 2012-13 subsidies under 2 per cent of GDP, and under 1.7 per cent of GDP in the next three years.
Petroleum subsidy bill for the next fiscal year that begins on April 1 is seen at 435.8 billion rupees.
