Fiscal deficit will not hamper flow of FDI in India: Montek

February 4th, 2009 - 9:48 pm ICT by ANI  

New Delhi, Feb 4 (ANI): The high fiscal deficit will not in any way hamper the flow of foreign investments, said Deputy Chairman of the Planning Commission Montek Singh Ahluwalia.

He admitted that the fiscal deficit could rise but this should not be construed as slowdown in the economy.

Ahluwalia said high fiscal deficit due to economic down turn is a global phenomenon and India is no exception.

Replying to a question on job loses, he said when the growth rate has come down to seven percent in place of 8-9 percent, and this is quite possible.

Participating in the Social Sector Editors Conference in New Delhi this evening, he urged the states to focus on health and education sectors as funds earmarked for these sectors could not be fully spent this fiscal.

Ahluwalia said that centre accorded highest priority to these sectors, and elaborated that the share of GDP for education sector has substantially gone up from eight to about 20 percent.

He said the focus is to link education to skill development in a bid to create more skilled manpower.

Ahluwalia said that National Rural Health Mission has helped a great deal in changing the health profile of rural India but pleaded to allocate more funds to these sectors. (ANI)

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