FM sees better fiscal, revenue deficit figures

New Delhi, Feb 7 (IBNS):?Union Finance Minister Pranab Mukherjee on Monday said that?a better-than-anticipated-gross domestic product (GDP)-growth is set to ensure that India’s performance on fiscal and revenue deficit targets for the year would be better than the projections in the Budget 2010-11.?

Taking note of estimates of National Income for 2010-11 released by the Central Statistical Organisation (CSO), Mukherjee said that the?growth in GDP at market prices at 9.7 percent for 2010-11 reflected buoyancy in the India’s tax collections.

Gross Domestic Product (GDP) at factor cost is?estimated to increase by 8.6 per cent in 2010-11 as per CSO advance?estimates which is in line with the Finance Ministry projections for?the year as a whole, he said.

Th minister said that on the supply side, strong agriculture performance?aided by growth in manufacturing and services has helped in restoring?high overall growth in GDP for the fiscal year 2010-11.?

“Construction activity is also showing improved growth momentum,” he?said.

He said that on demand side while private consumption is estimated?to grow at 8.2 percent in 2010-11 over the last year, the growth in?investment is anticipated at close to 9 per cent.?

Growth in?government spending is estimated to moderate significantly to 2.6 per?cent in 2010-11. The export growth is projected at 12 per cent and?import growth at 6.3 per cent 2010-11, the Minister added.

Mukherjee said that the strong revival in private spending and?improvement in investment growth is a welcome sign. He reiterated that?there are still some ground to be covered before regaining the
investment growth witnessed in the pre-crisis period.