In an exclusive interview to CNBC-TV18, Planning Commission deputy chairman indicates that the governmt was ready to get tough on CAD in Budget-FY14
Explaining the government's proposal to hike diesel prices among other initiatives, Planning Commission deputy chairman Montek Singh Ahluwalia indicated that the petroleum ministry is likely to decide on the fuel hikes in about two weeks' time. He called for the need of a graduated adjustment on fuel prices as the current account deficit (CAD) was a key worry for the government at this point of time.
In an exclusive interview to CNBC-TV18, Ahluwalia said that government expects to bring down the CAD to 3-percent of GDP in the next two-to-three years and was willing to take tough decisions in this regard. He signaled that the Budget would contain measures to speed up the implementation of infrastructure projects, boost GDP growth to 8 percent in two-to-three years and lure adequate inflows to finance the current account deficit.
The Planning Commission deputy chairman pointed out that spectrum auctions need not be viewed as a capital receipt and that the reserve price signaled the minimal expectations from the government. He added that the commission was examining the issues hindering the award of projects by NHAI and called for the need of procedural improvement to speed up the award of projects.
The Prime Minister is focusing on power projects suffering from linkage
issues and highlighted the necessity to streamline environment
clearances for execution of projects. Commenting on power-generation
capacities, Ahluwalia said that the mismatch in production at Coal India was a key hindrance and added that coal price-pooling issue is under consideration at this point of time"Do not expect a further deceleration in GDP growth. The GDP growth in the second half of FY13 will definitely be higher than the first."
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