Expressing satisfaction at the 7.2 per cent growth estimates for this fiscal, the Planning Commission today pitched for phased withdrawal of stimulus in the forthcoming budget to be unveiled by Finance Minister Pranab Mukherjee on February 26.

"We should say the stimulus has succeeded and we should begin to phase it down. Fiscal deficit next year would be lower than that of this year," Commission's Deputy Chairman Montek Singh Ahluwalia said.

In order to help the industry combat the impact of global financial crisis, the government had provided three stimulus packages to the industry resulting in a revenue sacrifice of Rs 1.86 lakh crore.

The stimulus, which included tax cuts and raising public expenditure, is expected to push up the fiscal deficit to 6.8 per cent of GDP during 2009-10 from 6.2 per cent a year ago.

Date : 08/02/2010. News by Newsofap.com