Govt not looking at reversal of policies this year: Montek
The government will not reverse monetary policy during the current fiscal in order to ensure that economic growth recovers, Planning Commission Deputy chairman Montek Singh Ahluwalia said.business Updated: Oct 08, 2009 00:02 IST
The government will not reverse monetary policy during the current fiscal in order to ensure that economic growth recovers, Planning Commission Deputy chairman Montek Singh Ahluwalia said.
"The government and the central bank has quite clearly said we are not looking at any reversal of policy during current financial year. This year is a year to make sure that economic growth recovers", he said in an interview to a business television channel CNBC TV18.
"That is not just India, that is the central message which came out of G-20 Summit at Pittsburgh. All over the world people are saying that there is some good news... But we are not out of the woods yet," he said.
"We should start thinking about how are we going to plan our exit, when the times to come to do that. As Prime Minister Manmohan Singh has said in Pittsburgh that time is not now", Ahluwalia said.
About the fund allocation for schemes to boost rural infrastructure like National Rural Employment Guarantee Act (NREGA), he said, "Schemes like NREGA is demand driven. So if the next year is a normal year, one should actually receive less allocation."
Ahluwalia said "I think that the broad thrust of the of the government has been more allocation to agriculture and rural infrastructure and also other infrastructure... that will continue".