CHALLENGESStructural concerns on inflation management to be addressed by improving supply response of agriculture to the expanding domestic demand and through stronger fiscal consolidation.
Implementation gaps, leakages from public programmes and the quality of outcomes pose a serious challenge.
Impression of drift in governance and gap in public accountability is misplaced.
Corruption as a problem to be fought collectively. Government to improve the regulatory standards and administrative practices.
Inputs from colleagues on both sides of House are important in the wider national interest.
Budget 2011-12 to serve as a transition towards a more transparent and result oriented economic management system in India.
OVERVIEW OF THE ECONOMY
Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms. Economy has shown remarkable resilience.
Continued high food prices have been principal concern this year.
Consumers denied the benefit of seasonal fall in prices despite improved availability of food items, revealing shortcomings in distribution and marketing systems.
Monetary policy measures taken expected to further moderate inflation in coming months.
Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year.
Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.
Average inflation expected lower next year and current account deficit smaller.
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