|
| Inflation to fall to 5-6% by December end: Govt |
| Press Trust of India / New Delhi Jul 20, 2010, 16:04 IST |
|
Buoyed by the prospects of a good monsoon, the government today said inflation would halve to 5-6 per cent by December end and the economic growth would accelerate to 8.5 per cent during the current fiscal.
"With a good monsoon and good crop, inflation will certainly fall. Experts are saying that inflation will be 5-6 per cent by year end... I don't have any reason to disbelieve it," Cabinet Secretary K M Chandrasekhar told reporters here.
The overall inflation, which is in double-digit for last several months, was 10.55 per cent in June. As far as food inflation is concerned, he said, "over the last 3-4 months, we have been able to maintain prices at stable levels. Price have more or less stabilised."
On growth prospects, he said, "We are estimating something like 8.5 per cent growth". Indian economy grew by grew by 7.4 per cent during 2009-10.
Following the global economic crisis, the growth rate slipped from over 9 per cent to 6.7 per cent during 2008-09. The economy, however, started picking up following the stimulus packages given by the government and the Reserve Bank to boost demand and increase liquidity.
When asked about the International Monetary Fund's projection of 9.5 per cent, he said, India can even achieve 10 per cent growth in the near future. On fiscal deficit, he said it could fall to below the budget estimate of 5.5 per cent because of high non-tax revenue receipts.
The government received over Rs 1 lakh crore from sale of spectrum against the original estimate of Rs 35,000 crore.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
