Web chat with Chidambaram: On Google Hangout, FM says 'I don't think anything has gone terribly wrong'

Aiming to restart the growth engine, Finance Minister P Chidambaram today on web chat said he will monitor every quarter the investment plans of public and private sector entities that are sitting on huge cash piles - FM was on Google Hangout for over 30 minutes.

"Each PSU is required to fill up that proforma, tell us what their capex targets are next year. We will monitor them closely beginning from April. Every quarter I will monitor what they are investing," he said in an interactive session on Google Hangout.

Chidambaram took questions from economists, businessmen, IIM student, home maker and others during the hour-long interaction on the Internet.

The Finance Ministry, Chidambaram said, has already issued letters to the PSUs asking them to submit their investment plans for the next financial year.

In his meetings with the public sector executives earlier, Chidambaram had said that they would be asked to pay special dividend if they failed to execute investment plans.

The whole exercise was aimed at re-starting the growth engine, the Minister said, adding that the economy will grow by over 6 per cent in the next financial year and even higher in the subsequent years.

"In the current year growth has slipped to 5 per cent, but that doesn't mean we cannot get into 6 per cent or 7 per cent... I am confident we will get to 6 per cent next year and 7 per cent in the year after. Potential is 8 per cent, we are aiming at 9 per cent," he added.

On what has gone wrong in the recent past, Chidambaram said: "I don't think anything has gone terribly wrong."

Things started worsening after the global crisis in 2008, he said, adding, "there are some matters which has to be fixed. First is the fiscal deficit, second is the Current account deficit".

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