Planning Commission Deputy Chairman Montek Singh Ahluwalia, in the backdrop of the last interim budget of the UPA-II, has said that the new government will inherit a better economy with comfortable inflation and stable external sector which would revive growth and investments. The government has already taken a number of steps and this is acknowledged now that the effort to setup a cabinet committee on investments has led to a large number of clearances being taken out of the way.
Ahluwalia said that “There will not be an external instability. The new government will inherit a Current Account Deficit (CAD) which is very comfortable. Foreign exchange reserves are extremely comfortable. I think there is very positive attitude towards India.”
Explaining his points Ahluwalia said that the government took preventive steps leading to the current account deficit (CAD) expectations to fall to 2.5 percent and indications are consistent with the expectation that the next year, i.e. 2014-2015, the economy is well set to put in a better performance both on the growth side and in terms of external pressures. However, he also said that on the fiscal side, one should never think that what they have done is perfect but it will be completely wrong to say that all we did was throw the fiscal prudence out of the way, which is just not the case.