Earning My Money

New Delhi, Feb 7 (PTI) Finance Minister Pranab Mukherjee today said the 8.6 per cent economic growth estimated for the current fiscal was satisfactory in the wake of the rising inflation and trade imbalances.

"A 8.6 per cent is quite encouraging despite all these difficulties. Now the other issue is inflation, trade balance.. these are to be addressed," Mukherjee told reporters here.

Mukherjee said despite challenges "it is quite encouraging that it (GDP) is not deteriorating." The Central Statistical Organisation (CSO) today estimated economic growth for the current financial year at 8.6 per cent, as against 8 per cent a year ago.

"All along I was maintaining, it should be around 8.5 per cent plus. 8.6 per cent is accepted. My concern is also about the inflation and trade balance," he added.

The 8,9 per cent growth in the first half of the current fiscal notwithstanding, the government is battling high inflation, particularly food inflation.

The overall inflation has remained above the comfort zone of 5-6 per cent for over a year now.

In December, the inflation has shot up to 8.43 per cent, from 7.48 per cent in the previous month. \ The food inflation is ruling at 17.05 per cent for the week ended January 22.

The RBI in its quarterly monetary policy review last month upped the March-end inflation projection to 7 per cent, from 5.5 per cent.

In the July-September quarter this fiscal, the Current Account deficit (CAD) surged by 72 per cent to USD 15.8 billion, compared to USD 9.2 billion in the same period last year due to higher imports.

The country''''s CAD, representing the difference in inflows and outflows of foreign exchange, barring capital movements, stood at 2.9 per cent of the GDP last fiscal.

Vivek Kumar

PGDM,2nd Sem