The Hindu Business Line : Containing inflation major challenge: Kalam

THE President, Dr A.P.J. Abdul Kalam, on Saturday identified containing the present spiralling inflation rate among the major challenges facing the Government.

"Our economy has yielded a growth rate of the Gross Domestic Product (GDP) by over 8 per cent, driven by broad based accelerated growth in agriculture, infrastructure, manufacturing and services. Sustaining our growth, containing the annual inflation rate, containing the revenue deficit through prudent revenue enhancement and expenditure management are other challenges for the Centre and the States," Dr Kalam said in his pre-Independence Day address to the nation.

Terming illiteracy, unemployment and lack of basic healthcare as the root causes of poverty, he called for increasing public spending in these areas. In particular, the President sought earmarking an additional 2 per cent to 3 per cent of GDP for education, from the existing 4 per cent.

While admitting that public expenditure alone may not be able to meet the challenge, Dr Kalam appealed to the entire corporate sector to emulate the examples set by some industry captains whose focus on education had made a difference.

Dr Kalam recommended construction of layered wells at the entry points of the Kosi and Brahmaputra rivers to control floods.