Stimulus package to continue till global recovery: Pranab


Bangalore : The stimulus package, introduced in the last fiscal to protect the Indian economy from the impact of the global financial crisis, would continue till the economies of Europe and US recover, Finance Minister Pranab Mukherjee said here Saturday.

Support TwoCircles

“At the recently held G-20 countries’ finance ministers’ meet in London, we came to the conclusion that we should not reverse the stimulant package, which we have injected in the aftermath of international financial crisis, till the full recovery in Europe and North America is distinctly visible,” Mukherjee told reporters at a news conference.

The finance minsters of the G-20 met in London Sep 4-5 to prepare a brief for the third group summit at Pittsburgh, the US, Sep 24-25, where Prime Minister Manmohan Singh is also participating.

Keeping in view the consensus at the G-20 meet in London, Mukherjee said he was watching the situation carefully.

“I do feel there will be a recovery in the Indian economy in the third and fourth quarters of this fiscal (2009-10). We shall have to wait for some more time, as the GDP (gross domestic product) growth in the first quarter was 6.1 percent. We will know the growth in the second quarter next month,” Mukherjee said.

The finance minister hoped he would have a clear picture of the country’s economic health at the time of formulating the budget proposals for next fiscal.

“At the time of formulating the budget proposals, it is possible for me to have an overall look into the whole aspects,” Mukherjee noted.

At the G-20 finance ministers’ meeting, the experts were of the view that the US economy would revive by this year-end while Europe would begin to recover from next year.

The previous United Progressive Alliance (UPA) government announced two stimulus packages in December 2008 and January 2009.