The Finance Minister, Mr Pranab Mukherjee, has admitted that the Euro zone crisis is now hurting the economy. However, he hoped that the economy will soon revert back to a higher growth trajectory.
Addressing the Consultative Committee attached to the Ministry of Finance, the Finance Minister said, “Euro zone crisis, downturn in external demand resulting in slowdown in exports, currency volatility and current account deficit among others have also affected our economy.” However, he assured that the present downturn was only temporary.
He said that the food inflation had come down to 1.8 per cent and that there was moderation in inflation, in general. The Finance Minister said that the savings rate had also gone up. He said that necessary instructions had been issued to all the Ministries and departments to adhere to their expenditure ceilings.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.