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Economy has considerably slowed down : Admits PM

Posted on Feb 13, 10:35AM | UNI

New Delhi, Feb 12 : Admitting that the economy had considerably slowed down during the past two years, Prime Minister Manmohan Singh today said growth in this fiscal year would be much below the 8 per cent average achieved in the last decade.

Addressing state Governors on the concluding day of the two-day Governors Conference here, the Prime Minister said a high level of fiscal deficit had been a specific cause of worry in the recent

time and the Government had broadly accepted the recommendations of the Kelkar Committee which was appointed to recommend a road map for fiscal consolidation.

The government intended to contain the fiscal deficit for the current year at 5.3 per cent of GDP and reduce it to 4.8 per cent in the next year.

It was targeted to be reduced by 0.6 percentage points each year thereafter, he added.

He, however, said efforts were being made to streamline the process of clearance of investment proposals, paying particular attention to clearances from the environment as well as towards removal of infrastructural bottlenecks.