Monday 17 February 2014

Current Affairs-Union Interim Budget 2014-15-UPA Government has Delivered Above the Trend Growth Rate Says Finance Minister



UPA Government has Delivered Above the Trend Growth Rate Says Finance Minister; Recent Decline in Growth Rate Arrested


The Finance Minister, Shri P. Chidambaram has said that the UPA Government, during its two terms, has delivered above the trend growth rate in India. In his Interim Budget speech for the year 2014-15, the Finance Minister said that over a period of 33 years, the trend growth rate in India has been 6.2 per cent. Average annual GDP growth during the period 1999-2004 was 5.9 per cent, which is below the trend rate. In the next five year period 2004-2009, it was 8.4 percent and, in the period 2009-2014, it will be 6.6 per cent. Shri Chidambaram said that UPA-I and UPA-II have delivered above the trend growth rate during its tenure. 

The Finance Minister informed that the recent decline in GDP growth rate has been arrested. He added that due to the economic slowdown, the GDP growth rate declined from 7.5 per cent in first quarter (Q1) of 2011-12 to 4.4 per cent in Q1 of 2013-14. However, due to the numerous measures taken by the Government, growth in Q3 and Q4 of 2013-14 will be atleast 5.2 per cent. 


The Minister expressed confidence that the economy is more stable today than what it was two years ago. The fiscal deficit is declining, the current account deficit has been contained, inflation has moderated, the quarterly growth rate is on the rise, the exchange rate is stable, exports have increased, and hundreds of projects have been unblocked, he added. 

Outlining the achievements of the Government during the last ten years, Shri Chidambaram said that food production has increased to 263 million tonnes from 213 million tonnes ten years ago. Similarly, while the installed power capacity was 112,700 MW ten years ago, today it is 234,600 MW. The length of rural roads under the flagship programme PMGSY has increased to 389,578 KM from only 51,511 KM a decade ago. The Central Government will spend five times more on health this year as compared to the expenditure ten years ago. 

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