GDP at 9.2 in 07-08, inflation up by 1.1 pc: Govt

New Delhi, Feb 28: The government today projected a 9.2 per centGDP growth rate in 2007-2008 but expressed concern at growinginflation, estimated at between 5.2 and 5.4 per cent, up from 4.4 percent last year.

Finance Minister P Chidambaram, presenting the 2007-2008 Budgetproposals in Lok Sabha, expressed the government's commitment toenhance savings and investment rate to put the economy on a highergrowth trajectory.

In his one hour and 45 minute Budget speech, the Finance Ministersaid the government was committed to its promise of ''inclusivegrowth'' and, given the right mix of policies, the poor would benefitfrom growth ''driven by savings and investment.'' He, however,expressed concern at growing inflation and said the average inflationin 2006-2007 was estimated at between 5.2 and 5.4 per cent, up fromlast year's 4.4 per cent.

Observing that Foreign Exchange reserves stood at 180 Billion USDollars, he said it could not be denied that monetary trends had putpressure on domestic prices.

At the same time, supply constraints had emerged in some essential commodities like wheat, pulses and edible oils.

The Finance Minister said the UPA government had, during the pastthree years, registered an average growth rate of 8.6 per cent.

''The biggest plus'' was that the growth rate had improved from7.5 per cent in 2004-2005 to 9 per cent (Quick Estimate) in 2005-2006and, according to Advance Estimate, to 9.2 per cent in 2006-2007,'' headded.

Pointing out that the UPA government had delivered XXX Picking up from opening para of PAR 108, Budget-Chidambaram Two LS.

UNI

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