Speaker: Somayajulu -Mar17,2012

Describing the union general budget for 2012-13 as derogatory YSR Congress Party has said UPA-II is struck with policy paralysis due to coalition compulsions and is not taking the decisive steps to increase the growth rate.
“The farming sector and industrial sector is not being looked after to the desired levels and growth percent in both the sectors is minimal and the Centre has not been taking any steps to increase the growth rate fearing inflation,” the party Advisor DA Somayajulu and senior leader Konatala Ramakrishna told reporters here on Saturday.
“Though the Union Government has boasted of 9 per cent economic growth, it could hardly achieve 6.7 per cent and it had given enough indication that fiscal stimulus packages will be withdrawn in a phased manner,” he said.
Unless economic activity is created, the GDP will not go up and the Government is not keen on spending on capital investments like completing the many irrigation and other projects which will help increase the growth rate, he said.

Increasing the service tax net and suggesting an increase of fiscal and revenue deficit forces slow or no economic growth. We can achieve it only when the revenue deficit is brought down to zero, he said.
All estimates were going topsy-turvy as the estimated 18 per cent budget revenue stood at 7 per cent for the ten months period during 2011-12.
There is a policy paralysis as there is stagnation in production of coal for the past three years so is the production of crude oil and we are forced to import.
Subsidies will be reduced, is what the Centre is telling and which sector will be affected remains to be seen, he said.
During the 10th FY Plant the growth rate was 7.4 and in the 11th plan it was pegged at 7.6 per cent. The agriculture growth rate is just 2.5 per cent while a 4 per cent growth rate was assured. The situation in manufacturing sector, which is a part of industrial sector and has a large workforce, is pathetic, he said.
There is no investment on capital expenditure and in the coming days economic growth touching the desired percent could be a mirage, he said.

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