After unveiling a bold PSU sell off plan, Prime Minister Dr Manmohan Singh said that his Government is better placed now to unleash financial sector reforms, but the fiscal stimulus will be phased out next year.
Mr Manmohan Singh while inaugurating the India Economic Summit earlier this week said that "We are also better placed than any time in the recent past to push the reform process forward... We need to ensure that financial system can provide the finance needed for our development. This opens up a broad agenda for reforms.”
Addressing the global CEOs and domestic industry, the Prime Minister said that the government would make a gradual but a steady progress in the financial sector reforms.
The government would build a political consensus for passage of legislations required for reforms in the insurance and pension sector.
He however announced that the government will take steps to gradually withdraw the financial sops given last year in the wake of the global financial crisis.
Dr Singh said that "Like other countries, we resorted to a significant stimulus and we will take appropriate action next year to wind this down.”
His assertion coincides with the meeting of the G-20 Finance Ministers in Scotland which has on its agenda the exit strategy for global stimulus.
(Sourced from http://www.steelguru.com/news/index/2009/11/14/MTIwMjM3/Stimulus_plans_-_PM_hints_at_exit_next_year.html)
Friday, November 13, 2009
Stimulus plans - PM hints at exit next year
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