New Delhi: Finance Minister Pranab Mukherjee on Sunday said he was "extra careful" while formulating his Budget proposals in view of the political situation on the ground.
"... Knowing the mood of the persons who matters here (in Parliament), I had to be extra careful and I had to make my colleagues extra careful. Therefore, many of things which could have been done, rather should have been done, could not be done just at the time of the Budget," he said.
Addressing the industry leaders in New Delhi, the Finance Minister said the policy shifts are quick and he had to keep in mind the prevailing ground reality that a "decision taken in one House is reversed or changed within 24 hours, when the same proposal approved by one House comes to the other House".
He said the impact of high volatility in international commodity prices; uncertainty and fragile economic growth in the developed nations on Indian economy will have to be addressed collectively by the government, political establishments and the industry.
"While fiscal consolidation will help create more space for private investment demand, improved financing and spending on infrastructure will help strengthen investment," he said.
Mukherjee said the government is focusing on improving domestic demand to promote medium term growth.
Commenting on interest rates, he said "in coming months we are looking at reversal of policy rates" adding that this will help in improving business sentiments.
Industry has been pitching for lower lending interest rate as a hard monetary policy has impacted investments as credits have become costly.
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