| Experts tell FM to step up spending in infra | |
| Press Trust of India / New Delhi June 04, 2009, 21:40 IST | |
Leading economists today asked Finance Minister Pranab Mukherjee to have provisions in the Budget to step up public investment in infrastructure to boost the economy reeling under the impact of the global financial meltdown.
"Fiscal stimulus while necessary... Economy requires extended public expenditure on physical infrastructure," economic think-tank ICRIER's Director Rajiv Kumar told reporters when asked about suggestions put up for consideration by the Finance Minister.
Several economists, he added, underlined the need for medium-term fiscal framework to bring back deficit to a more acceptable level.
Three stimulus packages announced by the government to boost a sagging economy since December 2008 have left significant burden on the exchequer, raising the fiscal deficit.
The economists also made a case for simplification of tax structure. "There is no need to have all sorts of sops and exemptions. I think the whole system of export promotion and supporting the SME should be reviewed and revamped," Kumar said.
Among others who were present at the meeting called by Mukherjee to elicit their views on the budget, included Arjun Sengupta, Bimal Jalan, S R Hashim, B B Bhattacharya, M Govinda Rao, Suman Berry, Saumitra Chaudhuri and Omkar Goswami.
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