It is not right time now to withdraw stimulus packages: FM
The government today said the time has not come to withdraw stimulus packages given to prop up the slowing down economy.
By PTI |
NEW DELHI: The government today said the time has not come to withdraw stimulus packages given to prop up the slowing down economy.
"When the decision is made it will be known to you," Finance Minister Pranab Mukherjee told reporters when asked about an exit strategy for the stimulus packages.
"We have reviewed the situation. Nationally, internationally the situation is reviewed. G-20 Finance Ministers reviewed the overall situation.
The consensus is that the world economy is still not out of the woods. It will not be desirable to work out the strategy for exit at this moment," Mukherjee told reporters after addressing the Annual Conference of Central Board of Excise and Customs.
The meeting of G-20 Finance Minister in London last week, which was also attended by Mukherjee, had decided to continue with the stimulus packages.
The minister said the decision was taken collectively (G-20) and he was party to it. "Idea was, within the specific time period we are constantly reviewing the situation."
Mukherjee had earlier expressed hope that the consensus of Finance Ministers at G-20 will get reflected in the meeting of heads of states in Pittsburgh later this month.
Like other countries, India too gave fiscal sops to spur the economy. Because of these stimulus packages, which includes tax cuts as well as increase in expenditure, fiscal deficit is projected to increase to 6.8 per cent of GDP in 2009-10 whereas it should have come down to 3 pe cent last fiscal itself.
Official say that additional fiscal deficit could be considered as stimulus package.
Among other things, the government had cut tax rates and excise duty by six per cent and service tax by 2 per cent and increased its expenditure which this fiscal will be more than Rs 10 lakh crore.
Earlier in the day, Expenditure Secretary Sushama Nath said that the government would stick to over Rs 10 lakh crore expenditure budgeted for the current fiscal.
"When the decision is made it will be known to you," Finance Minister Pranab Mukherjee told reporters when asked about an exit strategy for the stimulus packages.
"We have reviewed the situation. Nationally, internationally the situation is reviewed. G-20 Finance Ministers reviewed the overall situation.
The consensus is that the world economy is still not out of the woods. It will not be desirable to work out the strategy for exit at this moment," Mukherjee told reporters after addressing the Annual Conference of Central Board of Excise and Customs.
The meeting of G-20 Finance Minister in London last week, which was also attended by Mukherjee, had decided to continue with the stimulus packages.
The minister said the decision was taken collectively (G-20) and he was party to it. "Idea was, within the specific time period we are constantly reviewing the situation."
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Mukherjee had earlier expressed hope that the consensus of Finance Ministers at G-20 will get reflected in the meeting of heads of states in Pittsburgh later this month.
Like other countries, India too gave fiscal sops to spur the economy. Because of these stimulus packages, which includes tax cuts as well as increase in expenditure, fiscal deficit is projected to increase to 6.8 per cent of GDP in 2009-10 whereas it should have come down to 3 pe cent last fiscal itself.
Official say that additional fiscal deficit could be considered as stimulus package.
Among other things, the government had cut tax rates and excise duty by six per cent and service tax by 2 per cent and increased its expenditure which this fiscal will be more than Rs 10 lakh crore.
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As a result the economy grew by 6.1 per cent in the first quarter of this fiscal after slowing down considerably in the previous two quarters.Earlier in the day, Expenditure Secretary Sushama Nath said that the government would stick to over Rs 10 lakh crore expenditure budgeted for the current fiscal.
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