Difficult decisions need to be taken on spending and revenue: PM

Close on the heels of the Finance Minister’s statements on the necessity of taking tough policy decisions and bringing in financial austerity, Prime Minister, Manmohan Singh also stressed on the need to take strict measures to deal with the fiscal situation in the country.

While speaking at a function to mark the completion of third year of the UPA-II government, the PM has stated that difficult decisions need to be taken both on spending and revenue mobilization. He has specifically stressed on the need to handle the worsening balance of payment and fiscal situation.

It is noteworthy that these comments are coming in at a time when the country is faced with a current account deficit (CAD) of 4% of GDP. The rupee has fallen to record levels against the dollar and the government is faced with huge subsidy bills due to subsidies extended for fuel.

The PM although has chosen to comment on the issue of falling rupee a little lightly stating that ‘in a market economy, currency goes up and down’. He has stated that India has managed a growth level of close to 7% of the GDP in a worsening global environment which is creditable. He is also of the opinion that the general perception of policy paralysis needs to be corrected with reality.

On the achievements of the UPA government, it has been pointed out that poverty has declined at twice the rate that it did before the UPA government's tenure and there have been notable success in agriculture which recorded a growth of 3.3% in the 11th Plan as against 2.3% in the previous Plan. India a record production of foodgrains and the farmers are getting better prices for their crops. Rural wages have gone up and so has the disbursement of loans to farmers. Efforts are also being made to expand opportunities to scheduled castes, scheduled tribes, other backward classes, minorities and women.