Govt projects GDP at 9.2 in 2007-08, inflation up by 1.1 per cent

New Delhi, Feb 28 (UNI) The government today projected a 9.2 per cent GDP growth rate in 2007-2008 but expressed concern at growing inflation, estimated at between 5.2 and 5.4 per cent, up from 4.4 per cent last year.

Finance Minister P Chidambaram, presenting the 2007-2008 Budget proposals in Lok Sabha, expressed the government's commitment to enhance savings and investment rate to put the economy on a higher growth trajectory.

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

Observing that Foreign Exchange reserves stood at 180 Billion US Dollars, he said it could not be denied that monetary trends had put pressure 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 past three years, registered an average growth rate of 8.6 per cent.

''The biggest plus'' was that the growth rate had improved from 7.5 per cent in 2004-2005 to 9 per cent (Quick Estimate) in 2005-2006 and, according to Advance Estimate, to 9.2 per cent in 2006-2007,'' he added.

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

UNI