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Montek for phasing out stimulus from next fiscal

Press Trust of India  |  New Delhi 

Montek Singh Ahluwalia

Planning Commission Deputy Chairman Montek Singh Ahluwalia pitched for phasing out of the stimulus package from next fiscal saying he agrees with the Prime Minister Manmohan Singh.

"I agree with the Prime Minister. When the Prime Minister has spoken, you should take that as the government's view," Ahluwalia told PTI, when asked about withdrawal of stimulus given to the industry since September last year to contain the impact of the global financial meltdown.

Prime Minister Manmohan Singh in his address to India Inc at the India Economic Summit had said, "Like other countries, we resorted to a significant stimulus and we will take appropriate action next year to wind this down."

Clarifying about the time-line stated by the Prime Minister for withdrawal of stimulus, Ahluwalia said, "Next year means next financial year."

Finance Minister Pranab Mukherjee, however, had said that stimulus measures need to continue till there is robust recovery in the developed world, which account for bulk of India's exports.

"Umpteen number of times I have stated that in due course we shall have to take corrective measures (phasing out of fiscal stimulus) but still I do feel that strong domestic demand is necessary... It will continue for some more time," Mukherjee had said.

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First Published: Wed, November 11 2009. 18:41 IST