This is Finance Minister Pranab Mukherjee's fourth regular Budget. He presented three Budgets as finance minister in the Indira Gandhi government. But this would perhaps be his toughest job as he has to fight recessionary pressures and at the same time meet the fiscal deficit reduction targets.
Mukherjee points out that the focus of the government would be aam aadmi (the common man) with more employment generation schemes on the anvil.
With the Union Budget to be presented on July 3, the finance minister has started having discussions with senior ministry officials, industrialists and economists to chalk out a strategy to revive the economy.
India's Gross Domestic Product (GDP) rose by 7.5 per cent, 9.5 per cent, 9.7 per cent and 9 per cent in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9 per cent for three consecutive years for the first time.
But the 'India shining' story took a beating with the economic crisis. India's growth rate is now at 6.7 per cent in the wake of a global slowdown. Mukherjee has said the government will push for economic reforms to boost investment and development of core sector.
He said the government would increase its spending to restore growth and employment through additional borrowing.
Economists have urged the finance minister to increase public investment in infrastructure to boost the economy reeling under the impact of the global financial meltdown. The economists also sought a simplification of tax structure.
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