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Govt hopes to live up to expectations

New Delhi, April 29: The government feels it can achieve RBI’s forecast of 6 per cent GDP growth and batter down inflation from a current high of 6.4 per cent to nearer 5 per cent.

Finance minister Jaswant Singh told Parliament today that he was concerned about higher prices which he blamed on the Gulf war but said that the central bank and the finance ministry would be taking a series of steps to check the inflationary trend.

Finance secretary S. Narayan also told newspersons that volatility in farm commodities and crude prices “was on way to turning stabler.”

“The 5-5.5 per cent inflation is a very realistic assesment,” he added. “The central bank’s projection of 6 per cent GDP growth is quite achievable,” he added.

Elaborating on the growth impetus in RBI’s credit policy unveiled today, Narayan said the 4.4 per cent GDP growth last fiscal was due to a fall in farm output by 3.7 per cent.

Even if farm growth remains flat this fiscal, the economy has the potential to grow by 6 per cent, he said referring to RBI’s projection.

He said the 4.4 per cent growth was based on quick estimates of the CSO, which would be revised in the coming months.

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