Finance Minister Pranab Mukherjee while presenting the Union Budget on Friday said a higher GDP growth path and inclusive development were important challenges ahead for the government.
"The economy is in a better position than a year ago. However, challenges remain. We have to quickly revert to a higher GDP growth path of nine per cent and cross double digit growth," he said presenting the annual Budget for 2010-11 in the Lok Sabha.
"Other challenges before our government are to harden economic growth to make development more inclusive and another relates to problems in the government system," he said.
India's economy is expected to grow 8.25-8.75 per cent in 2010-11 and may cross nine per cent in 2011-12, according to the economy survey report tabled by Mukherjee on Thursday in the Lok Sabha.
Fiscal deficit, a reflection of government borrowings, is estimated to touch 6.8 percent in 2009-10, up from 6.2 per cent in the previous fiscal, mainly on account of the stimulus measures of Rs.186 lakh crore offered during December 2008 and January 2009.