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Minister hopes economy may grow 6%

Minister hopes economy may grow 6%
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Finance minister P Chidambaram expressed confidence that the economy will grow at 6 percent in 2013-14. It may be recalled that the Central Statistical Organisation (CSO) expects the economy to expand at 5 percent in 2012-13.

The minister said he would ask public sector companies to submit their annual investment plan for the next financial year to the finance ministry.

He also said that those public sector firms not meeting their investment targets will have to pay the government a higher dividend. He also informed that he would ask the business houses about their capital expenditure plans.

He said companies must invest instead of just announcing special economic zones. That is why, the union budget proposed investment allowance. he remarked.

On the fiscal deficit front, his ministry has drawn a red line and will not cross it for the current and the next financial year at 4.8 percent, he said.

The Reserve Bank of India (RBI) will soon take some follow-up steps. In the medium to long term, we have to export and pay for import. It is wrong to pay for our imports otherwise, he added.

Chidambaram expressed confidence that he could collect Rs 40,000 crore plus Rs 14,000 crore of residual stake in the non-government companies.

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