Budget to recapture rhythm of growth: PM (Lead)

Prime Minister Manmohan Singh Monday emphasised that the overall strategy of the budget was to ensure that India recaptures “the rhythm of accelerated growth” despite the recessionary tendencies in the world economy.

“He (Mukherjee) has done a commendable job in reconciling the short term requirements of our economy, to provide a stimulus to the growth process and simultaneously to ensure that we recapture the rhythm of the growth process despite the recessionary tendencies in the world economy,” the prime minister said commenting on finance minister Pranab Mukherjee's budget.

In the PM's reckoning Mukherjee had chosen a strategy to concentrate on increasing investments in infrastructure both in the public sector and in the private sector through the public private partnership (PPP) route.

“Simultaneously he has taken care that we spend a lot more money in putting in place social safety nets, in increasing our investment outlays in rural development, in agriculture, in healthcare services, in urban renewal missions.”

“Overall the strategy of the budget is to ensure that our economy recaptures the rhythm of the accelerated growth process. Simultaneously it seeks to honour in large measure, the commitments that we have made to our people to work steadfastly for the well being of the aam aadmi (common man).

Asked about the possibility of a 7 percent growth rate, Manmohan Singh said: “Well, we are working towards that goal and it is achievable. Seven percent growth rate this year is an achievable growth target but it is not good enough for the medium term, we must move to a growth path of 8 to 9 percent.”

As for the increased outlay for the National Rural Employment Guarantee Act (NREGA) he said the government was committed to the wellbeing of the poorer sections of the community.

In the budget Mukherjee hiked the allocation for the government's flagship rural job scheme by 144 percent to Rs.39,000 crore.

Manmohan Singh also said the government would go in for disinvestment of public sector undertakings, pointing out that Mukherjee had expressed this commitment in his budget.

"The finance minister has committed our government to increase disinvestment while maintaining the public sector character of public enterprises."

Without dwelling upon the details and the time frame, the prime minister said: "I haven't done any detailed calculations. It much depends on the economic situation."

About the much talked about administrative reforms for which several committees had been appointed, Manmohan Singh said: "The Administrative Reforms Commission has produced 15 voluminous reports. I am contemplating to set up an empowered group of ministers to apply themselves to see how to implement these voluminous reports."

The prime minister admitted that the police force was under-staffed and stressed the need to modernise police and armed forces.

Last updated on Jul 6^th, 2009 at 16:13 pm IST--IANS