The Hindu Business Line : Chidambaram hints at more reforms

New Delhi, Feb. 1 Ahead of the Union Budget 2008-09, the Finance Minister, Mr P. Chidambaram, said on Friday that growth potential of the economy could be fully harnessed and indicated that further reforms in critical sectors would see the India growth story sustained and consolidated over the Eleventh Plan period.

Addressing the members of the Parliamentary Consultative Committee attached to the Finance Ministry here on Friday, Mr Chidambaram said that overall macroeconomic fundamentals continue to be strong.

He also underscored the need for better implementation to ensure efficient delivery of public services across all sections of society to sustain the current growth rate.

Mr Chidambaram highlighted that the buoyant economic growth along with the efforts taken to improve the tax administration system has yielded rich dividends in terms of higher tax revenues.

The Central tax to GDP ratio is estimated to have increased from 8.2 per cent in 2001-02 to 11.8 per cent in BE 2007-08.

“This increase has provided the Central Government with additional resources which are not only being shared with State governments, but are also being utilised by the Centre for meeting expenditure in the social and infrastructure sectors and for achieving fiscal consolidation,” Mr Chidambaram said.

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