Premature to exit fiscal stimulus: FM

NEW DELHI: Finance Minister Pranab Mukherjee on Wednesday ruled out any immediate plans to exit the fiscal stimulus as the global economy is still to show robust recovery but was optimistic about domestic economic growth.

Ahead of the monetary policy review on October 27 by Reserve Bank, he said he will hold discussions with the apex bank and would not like to comment on issues like where interest rates are headed.

"We took that (decision on stimulus). We took some risks, there is no doubt about it. Unless the world economy firmly recovers -- signals are strong -- perhaps it would be premature to think of exit policy. Therefore, I would like to watch the situation for some more time," Mukherjee said.

He was asked if fiscal concessions given to the industry to overcome the global financial crisis that started last year would be withdrawn given the inflationary concerns.

He was optimistic about domestic growth prospects, saying even the Prime Minister's Economic Advisory Council's projection was on identical lines. The PMEAC expects the economy to expand by up to 6.75 per cent this fiscal, while pegging inflation at near six per cent by March 2010.

"There has been more or less the broad outline that he (PMEAC Chairman C Rangarajan) has indicated in the economic outlook for 2009 -10. We are also predicting like that," he said.