Exuding cautious optimism for the current fiscal,Prime Minister Manmohan Singh today said growth of 7.4 per cent in 2009-10 was one of the best performances in the world after the global economic crisis of 2008. The Report to the People,2009-10,lauds the governments efforts on the fiscal stimulus measures extended by it resulting in a renewed recovery in the manufacturing sector,which grew by 8.9 per cent in 2009-10,compared to 3.2 per cent in 2008-09. This balanced the pulldown effect that a negative 0.2 per cent agricultural growth had on the overall growth,earlier estimated to be about 7.2 per cent by the Central Statistical Organisation (CSO). On price rise,the report attributes the raging inflation of the past few months to supply-side constraints of food items,especially due to the unfavourable south-west monsoon. To tackle the problem,the UPA government took steps to ensure that there are enough food grains to intervene in the market and keep prices under control. For instance,the Centre allocated 20 lakh tonnes of wheat to state governments under the Open Market Sales Scheme (domestic). Another 10 lakh tonnes of rice was allocated during October 2009 to March 2010,according to the Report to the People unveiled today by Singh and UPA chairperson Sonia Gandhi following the completion of the governments one year in power. One of the major problems that we face at present is the pressure on prices. This is to a large extent the aftermath of the drought,but it needs firm action. prices have shown a moderating trend in recent weeks. I am hopeful that this trend will continue. We will continue to monitor the situation very carefully,and take whatever corrective steps are necessary to rein in inflation, the report said. Detailing the steps taken by the government to carry forward reforms in direct taxes,the report highlighted the launch of the draft Direct Taxes Code and a discussion paper on the same.
