Growth target fixed at 5.5 pc
Friday, 12 June 2009
FE Report
The government has set a lower economic growth target at 5.5 per cent for fiscal 2009-10 considering the bleak global outlook, said finance minister AMA Muhith while announcing new budget Thursday.
It expects the growth rate at 5.88 per cent in the current fiscal.
The minister cautioned that the upcoming fiscal year, beginning on July 1, will be a real challenge for the economy due to global crisis, which might linger until the later half of 2010
"In particular, the first half of the fiscal year will be very critical," he said.
The shocks emanating from the global economic recession may have an adverse impact on the export sector, he added.
The finance minister expects the inflation to come down to 6.5 per cent in the next fiscal from annual average of 7.0 per cent level in FY 2008-09.
"On a point to point basis the inflation in July in current fiscal year was 10.8 per cent, which declined to 5.4 per cent in April 2009," he said.
It is expected that there will be a downward inflation trend as prices of fuel and other essential commodities are declining and favourable production conditions, he added.
This trend of low inflation is expected to continue due to fall in prices of fuel and other essential commodities and also due to favourable production conditions.
The government has set a lower economic growth target at 5.5 per cent for fiscal 2009-10 considering the bleak global outlook, said finance minister AMA Muhith while announcing new budget Thursday.
It expects the growth rate at 5.88 per cent in the current fiscal.
The minister cautioned that the upcoming fiscal year, beginning on July 1, will be a real challenge for the economy due to global crisis, which might linger until the later half of 2010
"In particular, the first half of the fiscal year will be very critical," he said.
The shocks emanating from the global economic recession may have an adverse impact on the export sector, he added.
The finance minister expects the inflation to come down to 6.5 per cent in the next fiscal from annual average of 7.0 per cent level in FY 2008-09.
"On a point to point basis the inflation in July in current fiscal year was 10.8 per cent, which declined to 5.4 per cent in April 2009," he said.
It is expected that there will be a downward inflation trend as prices of fuel and other essential commodities are declining and favourable production conditions, he added.
This trend of low inflation is expected to continue due to fall in prices of fuel and other essential commodities and also due to favourable production conditions.