President Pranab Mukherjee has said that >inflation is still a problem though it has been on the decline.
At the same time, the economy is experiencing slower growth. But he hopes that things will improve soon.
In his first address to the joint sitting of Parliament on the opening day of Budget Session, Mukherjee said: “Inflation is easing gradually but is still a problem.”
However, he did mention that in recent months, there have been positive developments too with moderation in core inflation.
Growth scenario
Talking about the overall growth scenario, he said that slower growth is the consequence of a combination of global and domestic factors.
“My Government is taking steps to deal with the factors responsible for the slowdown,” he mentioned while adding that policy measures announced during the year have also restored optimism at home and abroad.
Growth target
While mentioning 8 per cent average annual growth target for the 12th Five-Year Plan, the President said: “The 12th Plan recognises that growth outcome will depend upon the extent to which we are able to take some difficult decisions.”
>He admitted that the past year has been a very difficult one for the entire global economy.
Global slowdown
“Europe is in recession. Most emerging markets are growing very slowly. It has been a difficult year for India also. Both global and domestic factors have affected our growth. We need to address the impact of both,” he added.
Fiscal prudence
On concerns over fiscal prudence, Mukherjee said the Government has announced a roadmap for fiscal consolidation and would contain the fiscal deficit to 5.3 per cent of the GDP in the current financial year.
The Government, he added, is also working with states to reach a consensus on Goods and Services Tax (GST), which will streamline the indirect taxation system.