The Prime Minister Manmohan Singh, talked tough with his revamped Council of Ministers here on Thursday.
Partially blaming the difficult global economic conditions for the country’s economic slowdown and high fiscal deficit, he said that this was acting as a deterrent for domestic and foreign investments.
“While we should take justifiable pride in our successes, it is important to recognise that we are now also experiencing the fallout of difficult economic conditions worldwide,” the Prime Minister said.
“As a result, our growth has decelerated, our exports have fallen and our fiscal deficits are expanding. Of particular concern is the fiscal deficit, which is too high and acts as a deterrent for domestic and foreign investment,” he said, adding that “These issues have a rippling effect across the economy and on the work of many departments that are represented here.”
He, however, said that “We need not be unduly gloomy about our prospects; we certainly need to redouble our resolve to meet the challenges before us and rise to the task of governance.
The Prime Minister said, “We have notched up significant achievements in the field of social and economic policy-making.”
Infrastructure focus
Manmohan Singh said, “One area that is at the top of our agenda and will require particular attention and effort at multiple levels across Government is infrastructure.”
During the Twelfth Plan, he said that the Government has set a target of realising nearly $ 1 trillion of investment in infrastructure sectors. “To do so, we will have to overcome the constraints that currently deter or slow down this investment,” he said.
Constraints
“Fuel supply arrangements, security and environmental clearances and financing difficulties are among these constraints. The growing gap between demand and supply of energy has emerged as a major constraint on our development,” the Prime Minister said.
It is a major factor in widening the deficit on current account of balance of payments as well as the fiscal deficit. “It is imperative that we come to a common understanding on these issues and work out mechanisms and remedial measures that will enable us to tackle these critical deficiencies on a priority basis,” he said.