India continues to face inflation, cause for concern: Mukherjee

February 28th, 2011 - 2:40 pm ICT by ANI  

Pranab Mukherjee New Delhi, Feb 28 (ANI): Union Finance Minister Pranab Mukherjee on Monday said inflation continues to remain a concern, but exuded confidence that the monetary policy of Reserve Bank of India will lead to reduction in inflation numbers in the coming months.

Presenting the Union Budget for 2011-12 in the Parliament, Mukherjee said: “It (inflation) clearly remains a concern… But I expect the policy taken by RBI to further moderate inflation in coming months.”

Regarding food inflation, he said: “The total food inflation declined from 20.4 per cent in February, 2010, to less than half, at 9.3 per cent in January, 2011.”

He further said the Indian economy has regained the pre-crisis growth momentum, but there is a need for adjustment in the composition in demand and supply side.

“We have to ensure along with private consumption revival in private investment is sustained and matches pre-crisis growth rates at the earliest,” he added.

Mukherjee further proposed to raise farm loan target to Rs 4.75 lakh crores in the next fiscal year and said the government would also provide additional three per cent interest benefit on some farm loans.

The existing interest subvention scheme of providing short-term crop loans at seven per cent interest rate will continue during the 2011-12 fiscal,” he said.

The Finance Minister also raised the housing loan limit to Rs 25 lakh .

He also announced that the new Companies Bill could be introduced in the current session of Parliament.

On the Direct Tax Code, Mukherjee said the Bill was likely to be passed by Parliament in the next financial year after the Standing Committee’s report is received.

On the disinvestment front, Mukherjee promised to maintain the tempo and said the government had set a Rs 40,000 crore target this fiscal. (ANI)

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