FM Tips At More Fiscal Measures To Check Inflation

New Delhi: The Finance Minister, Mr P. Chidambaram, on May 17, said that he was willing to take more fiscal measures to check price increase in the economy and bring inflation below the five per cent mark. The average inflation in 2006-07 was 5.4 per cent. The Government wants to bring inflation between 4-4.5 per cent, which is the range acceptable to the Reserve Bank of India. The Finance Minister highlighted that the Government has already taken various fiscal steps, comprising cut in customs duties on edible oil, ban on export of pulses and milk powder.

Mr Chidambaram attributed the high price situation in the economy to high global prices of crude oil and metals besides stagnation in agricultural production. Moreover, increasing remittances from NRIs and foreign direct investment, government spending for rural employment, education and health sectors have also contributed to high inflation. Parliament has approved a Bill that would pave the way for listing and trading of securitised debt instruments or certificates in the country''s stock exchanges.