FM revises the GDP rate by 9.08%

Despite of facing very critical situation at the edge of economy deficit and spiralling inflation, Union Finance Minister P Chidambaram has predicted to get the economy growth rate at 9.08% by the end of the fiscal 2008-09 as he informed the members of Lok Sabha, the lower parliament house on July 22 during trust vote discussion.

“Despite predictions of gloom and doom, I had always maintained that the year will end with a growth rate close to 9 per cent. At the end of the year we have reported 9 per cent; but more refined estimates now place the growth rate at 9.08 per cent.” said Chidambaram in Lok Sabha.

Enumerating the government’s achievement in the Lok Sabha, FM said, “The economy has grown on an average of 8.9 per cent in the four years of the UPA Government….. It is because the economy grew at 9.4 per cent in 2005-06 and 9.6 per cent in 2006-07 that we were able to achieve an average growth rate for the Tenth Plan period of 7.8 per cent which was close to the target of 8.0 per cent.”

While comparing this achievement with earlier National Democratic Alliance (NDA) government, he said that it was an average of 5.8 per cent for the six years of the NDA Government.

Reckoning another major achievements, FM said that on the basis of data gathered from the participating financial institutions, government has granted the cumulative sum of Rs.66,477-crore to a total of 3,63,87,123 farmers including small and marginal. A sum of Rs.50,254-crore has been granted to 2,98,05,305 small and marginal farmers as complete debt waiver while 66,477 other farmers have got Rs. 16,223-crore as partial debt relief, as per FM cited.

While for those farmers who do not have work throughout the year, UPA government has introduced the National Rural Employment Guarantee (NREG) Scheme that spread 597rural districts of India in just within 15 months.

Outlining the UPA government’s policy on agricultural sector, FM said that this (UPA) government has launched the National Horticulture Mission, undertook the renovation, repair and restoration of water bodies, appointed the Vaidyanathan Committee on reviving cooperative credit institutions and implemented its report, launched mission for pulses, set up the Rain-fed Area Development Authority, introduced Rashtriya Krishi Vikas Yojana with an outlay of Rs.25,000 crore and launched the National Food Security Mission with an outlay of Rs.4,882 crore.

While on the record production of food gains, Chidambaram applaused, “Food grain production has registered an all time record of 230.67 million tonnes.” Describing the detail of crop production, he added that this year rice production has recorded 96.43 million tonnes, Wheat, common Cereals 40.73 million tonnes, Pulses 5.11 million tonnes, Oil seeds 28.82 million tonnes and cotton 25.81 million bales, which all are the record productions.

While appraising the UPA’s plan for the unorganised labour sector, FM said, “For unorganised workers, there is a path breaking Bill before Parliament. We are still debating it and I am confident that we can resolve the minor differences…. The UPA is the first Government that has focussed attention on workers in the unorganised sector.”

However he added that government has already introduced several revolutionary schemes: ‘Aam Admi Bima Yojana’, ‘Swastha Bima Yojana’ and ‘Janshree Bima Yojana’ to benefit workers in unorganised sector.

The Aam Admi Bima Yojana will provide death and disability cover to the poor; the Swasthya Bima Yojana will provide medical cover to the poor; and the Janashree Bima Yojana will provide health and life cover to the millions of women who are members of self-help groups.

For the old age pensioners, government has raised the pension amount of Rs.75 to Rs.200 per month, informed FM.

For Rustic development, UPA government has sanctioned proposals for Rs.50,500 crore for the first four years under the Rural Infrastructure Development Fund while it has allocated Rs.18,000-crore for year 2008-09.