Manila: The Finance Minister, Mr. Pranabh Mukerjee said The Government of India is dedicated to reduce the subsides to lower 2 % of the nation’s GDP(Gross Domestic Product ) in the present financial year and slash it more in the coming 3 years.
Mr. Pranabh Mukerjee was speaking in a press meet after assuming charge as the Chairman of the board of Governor of ADB (Asian Development Bank). The Finance minister said the government was taking intiatives to promote growth and curtail financial arrears.
He said that on the economical front, that they are committed to reduce the bill on subsidy to below 2% percent of Gross Domestic Product (GDP) in the year 2012 to 2013.and to 1.75% of the GDP in the immediate 3 years.
The minister said that the Central bank’s relaxation on monetary policy will assist in renewing personal investment and enhance the business attitudes.
RBI (Reserve Bank of India) in its yearly financial policy for the year 2012 to 2013 declared on Apr17th, reduced main policy to 0.50%. In three years this is central bank’s initial rate cut.
The minister said that he hopes that this initiative will assist in renewing investments and also in strengthening the business attitudes.
Mr.Pranabh Mukerjeee said financial growth of India is possible to speed up in the forthcoming years with government’s endeavors to renew investments.
The Finance Minster said that in the 2012-13 Union budgets, they have focused on reinforcing home growth consumers, promoting private investments to recover its pre 2008 disaster growth impetus and tackling supply restraints in agriculture and infrastructure areas.
The growth of economy is to drop to 6.9% in 2011 to12 in contrast to 8.4% recorded the preceding year.
A target of 7.6% has been set by the government for the present financial year that commences on 1st of April.
The Union finance minister said the catastrophe in the euro zone had caused a negative impact on the country’s economy.
He said the crisis in the Euro zone has caused a negative repercussion on the nation’s economy by means of poor growth, declining business responses, waning resources inflow, rate of exchange and stock market instability with attendant suggestion for investor assurance.