NEW DELHI, March 24 � Attributing the worsening fiscal situation to mainly soaring crude prices in global markets, Finance Minister Pranab Mukherjee today said the government will take �difficult decisions� in the coming months, reports PTI.
�In meeting the (fiscal deficit) targets..., I am conscious of the fact that the government would need to take and implement some difficult decisions in the coming months,� Mukherjee said at an event organised by Ficci here.
He further said the government will have to take steps to address the problems caused by �soaring price of brent crude�.
India imports about 80 per cent of its crude oil needs. On an average, the country imports about 110-120 million tonnes of crude oil a year, while domestic production is only 30 million tonnes.
The crude oil prices have touched USD 125 per barrel, fuelled by geo-political tension in the Middle-East.
�...To address these issues, we shall have to take steps and measures... (these issues) are staring us in the face and as a nation collectively we shall respond to that,� Mukherjee said.
�It not a question of whether we will be able to do it. It�s not a question of this combination or that combination. It�s a question of broad national interest where everyone of us who have a stake will have to take a decision collectively and my exercise will be to do that,� he said.
Drawing confidence from easing of inflation, Mukherjee said that the government expects interest rates to come down in the days to come. It will thus help in boosting the investment confidence, he added.
�Core inflation has moderated in the past three months and in the coming months we are looking at reversal of the policy rate, which should help in improving business sentiments,� Mukherjee said.
However, lurking fear of further spike in crude oil price could mute the quantum of rate cut by the Reserve Bank of India in the coming months.
�Core inflation has moderated in the past three months and in the coming months we are looking at reversal of the policy rate, which should help in improving business sentiments,� Mukherjee said.
However, lurking fear of further spike in crude oil price could mute the quantum of rate cut by the Reserve Bank of India in the coming months.
