Budget aiming at 6.5% growth, says Ahluwalia
Union Finance Secretary Montek Singh Ahluwalia says the 1998-99 Budget aims at a 6.5 per cent economic growth with the assumption that inflation will not exceed 7 per cent.
Addressing the customary post-Budget news conference in New Delhi, the
finance secretary and his team said the eight per cent
counterveiling import duty was not in contravention of the World
Trade Organisation agreement and will effect only one-third of
the imports.
Ahluwalia stated it was too early to say whether foreign companies would be allowed in as joint venture partners in the insurance sector. Right now, the government was committed to allowing Indian private companies into life and general insurance.
Finance ministry officials expect a buoyancy in revenue
collection due to rationalisation, stability and continuity of taxes
and revival of industrial and economic growth.
Estimates of total imports have been placed at $ 46.8 billion,
petroleum, oil, and lubricant imports at $ 9.5 billion
and non-POL imports at $ 37.3 billion placing the
rupee value at Rs 40 a dollar.
Ahluwalia defended the decision to impose an eight per cent tax on imports, saying it was not protectionist, nor did it contravene World Trade Organisation commitments.
He said while the government had to receive details of the sanctions from the United States, it would not affect the flow of private capital into the country.
The value of the rupee, he declared, would be determined by the market and the RBI would continue to ensure orderly conditions.
Finance Secretary Montek Singh Ahluwalia will discuss the Budget on the Rediff Budget Chat, Friday, June 5, 1900 hours IST (0930 hours EDT)
Budget '98
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