Despite the hue and cry by the allies of the government and opposition, Finance Minister P Chidambaram has ruled out rolling back decisions on diesel, LPG and FDI in retail and has expressed confidence that the government faces no threat from allies either inside or outside.
Not only this, the Finance Minister said that the government will take more policy steps in the next one-and-half months to revive growth, ‘I am very confident that between now and October 30, the government is expected to take a number of additional policy measures and also lay out a plan of fiscal consolidation.’
Chidambaram also appreciated the RBI’s initiative of reduction in CRR by 0.25 per cent to unlock Rs 17,000 crore of banking funds and said that the response of RBI on October 30 will be far more supportive of growth. The Reserve Bank is scheduled to come out with second quarter monetary policy review on October 30.
However, he raised his apprehensions about fiscal deficit target not being achieved and said that we will be lucky if we can achieve the fiscal deficit target of 5.1 percent of GDP and conceded that there could be some slippage.
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