Budgetary measures will boost investment and growth: Pranab

Finance Minister Pranab Mukherjee Friday hoped that the measures outlined in the 2010-11 budget will boost private investment and put the economy back on a 9 percent growth track.

“I am optimistic that the measures I have outlined in this year’s budget will revive private investment and put the economy back on the growth path of 9 percent,” Mukherjee said, addressing a SIDBI (Small Industries Development Bank of India) function here.

“The economy in 2009-10 would grow by 7.2 percent, which is impressive by global standards, while the growth during the 2010-11 will be between 8.25-8.75 percent,” he added.

The government till now has maintained that the economy will grow at 8.5 percent in 2010-11.

Prime Minister Manmohan Singh Thursday asserted that the Indian economy would grow at 9 percent by 2011-12 and at 10 percent thereafter in the 12th Five Year Plan.

India’s economy grew at 6.7 per cent in 2008-09 after having a growth of over 9 percent in three consecutive fiscals till 2007-08.

Mukherjee later told reporters that direct tax collection expected for the 2009-10 fiscal was well above the budget expectations.

The Central Board of Direct Taxes has already revised the original direct tax collection target of Rs.370,000 crore to Rs.400,000 crore this year on expectation that economic recovery would lead to a higher mop-up.