Panel on inflation discusses fiscal policy

The Inter-Ministerial Group (IMG) on inflation on Friday discussed macroeconomic demand management with focus on fiscal and monetary policy issues.

This was the first meeting of IMG, set up at the suggestion of the Prime Minister this February under the chairmanship of Chief Economic Advisor Kaushik Basu, to review the inflation situation and suggest corrective measures.

Montek Singh Ahluwalia, Deputy Chairman, Planning Commission addressed the members of IMG on macroeconomic demand management. He highlighted the need for reduction in subsidy to address the fiscal issues on a sustained basis.

The IMG has been entrusted with the task of studying and proposing policies pertaining to food article inflation and macro-economic demand management. The meeting was also attended by Planning Commission member secretary Sudha Pillai and Finance Secretary R S Gujral.

, besides Sumit Bose, Secretary, Expenditure; R Gopalan Secretary, Department of Economic Affairs; T C A Anant, Chief Statistician and Secretary, MoSPI, among other regular members of the IMG.