8% growth difficult, says FM

Finance Minister P Chidambaram on Monday said 8 per cent GDP growth would be "difficult" this fiscal on the back of the high 8.2 per cent growth attained in 2003-04.

"It is difficult to achieve 8 per cent growth this fiscal. The 8.2 per cent growth of 2003-04 was on the back of a low 4 per cent in the previous fiscal, which is slight statistical illusion," he said at a CII post-Budget meeting in New Delhi.

After 8.2 per cent growth, he said projections of 6.5-7 per cent was reasonable.

"I have said it will be between 6-7.4 per cent and any number close to 7.4 per cent, I will be happy," he said.

Dwelling at length on the reform measures unveiled in the Budget, Chidambaram said the reform programme will be carried out in five years and the United Progressive Alliance government under Manmohan Singh will last for five years to deliver.

"I am old-fashioned. I am here to play a five-day Test match and not to play a one-day international. The government is to last full five years and we will be here to deal with all the concerns," he said.

While admitting that all the concerns cannot be addressed in one Budget, he said: "Main Hoon Naa (I am here to address all your concerns)."

Chidambaram stressed on stepping up investment especially in agriculture and manufacturing sectors to step up growth.

"I am a firm believer that investment is key to growth and employment generation. So, as far as agriculture is concerned, we have provided for higher public expenditure, easy credit facilities, education schemes, mid-day meal scheme and restoring of water bodies," he said.

He said the divide between 'India and Bharat' cannot go until the delivery mechansim is improved in the country.

In this context, the finance minister stressed on public-private partnerships to improve delivery of goods and services, which cannot be the prerogative of the government.

He also sought India Inc's cooperation in upgrading of 500 Industrial Training Institutes to ensure that world class technical service was made available in the country.

Expressing confidence of attaining his revenue targets, he said the UPA government adopted the revenue targets envisaged in the Interim Budget of previous NDA government and added two things -- 2 per cent cess on all central taxes and the transaction tax.

"Unless we set the bar high, a little higher than it is possible, we won't be able to jump the bar," he said referring to 25 per cent growth in revenues set for this fiscal.

Chidambaram said he also proposed to tap the "undisputed recoverable arrears" of tax for mopping additional revenue this fiscal.

"I hope to collect a tidy sum. Perhaps some of you will pay when I come to you," he told the captains of industry.