We have limited scope for accelerating stimulus package: PM
Press Trust of India / Pittsburgh Sep 26, 2009, 12:54 IST
Prime Minister Manmohan Singh today said the scope and options for acceleration of stimulus package for the recovery of the economic crisis were "limited" but in the same breath not appeared to rule out any such possibility.
"Our response (of stimulus packages) was to a specific domestic situation. It is true that we have limited scope for accelerating stimulus package and our options are limited because of factors like substantial fiscal deficit and Reserve Bank's monetary policies. As of now inflation is not a problem," he told a press conference at the end of his two-day visit here.
He was replying to a question whether government would consider withdrawing the stimulus package in view of signs of recovery or whether it would inject a fresh dose.
"I would not like to announce package or policy from the foreign soil" he said in reply to a specific question whether steps for stimulating the economy would be taken up.
On stock markets picking up in the last few days, the Prime Minister said it was reflective of the economic recovery in the country.
The economic fundamentals were basically strong, he added.
At the Summit, Singh strongly pitched for continuance of the global stimulus package. The Summit declaration also favoured continuance of the policy and going slow on exit strategy.
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