The Hindu Business Line : Call for bold mid-term corrections in Budget

BRAIN STORMING SESSION: The Finance Minister, Mr P. Chidambaram, and the Minister of State, Mr Pawan Kumar Bansal, with economists at a pre-Budget meeting at North Block in the Capital on Saturday. - Ramesh Sharma

New Delhi , Dec. 30

The Finance Minister, Mr P. Chidambaram, has been asked by leading economists to announce some bold "mid-term corrections" in the forthcoming Budget.

At a pre-Budget meeting with the Finance Minister here on Saturday, the economists also called for greater investment to be made not only in the development of critical infrastructure but also the farm sector if the gross domestic product (GDP) growth was to be sustained.

Irrigation, R&D

At the meeting, the economists sought not only enhanced budgetary support for irrigation and research and development, but also called for the rationalisation of farm subsidies. The economists also called for imposing a goods and service tax by 2009-10. Most of the participants expressed confidence about the country achieving GDP growth of 9 per cent this fiscal despite inflation being at about 5 per cent.

The Director, Madras School of Economics, Mr D. K. Srivastava, pointed out that with the economy recording robust economic growth it was likely to achieve a 9 per cent growth. "Revenue collections are buoyant and inflation is within control. This is the right time for mid-term corrections," Mr Srivastava added.

Incentives to FIIs

The Director General, Research and Information Systems for Developing Countries (RIS), Mr Nagesh Kumar, felt that there was a need to give incentives to foreign institutional investment in infrastructure, apart from providing special incentives to labour-intensive exports and research and development activities in major sectors.

Mr Nagesh was of the opinion that in the forthcoming Budget, the Finance Minister would have to announce measures to enhance India's competitiveness in the global economy. India could not aspire to become a superpower on the strength of just a few sectors such as auto, pharma and IT, he added.

More Stories on : Economy | Budget | Foreign Institutional Investors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Vehicle production may touch 10.9 million in 2006

Call for bold mid-term corrections in Budget

`Land acquisition is a tough challenge in SEZ biz'

Oil, gas blocks: Ministry cautious on profit sharing issue

Bharat Sheth picks up 11.5 lakh shares in GE Shipping

Steel majors scout for mining opportunities in Africa

FIIs pump $881 m into the debt market in 2006

Party hard this New Year eve, you will be dropped home!