Government plans disinvestments

New Delhi, June 9 (ANI): Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has said the Government can raise funds through selling upto 49 per cent of state-run firms, adding the economic outlook had improved over the past three months.

"There can be really no objection to disinvesting upto 51 per cent. There may be some cases where a company itself prefers to raise funds for its expansion.

Obviously you take that into account so that the two together don't dilute below 51 per cent. I think that there is lot of scope of raising resources," Ahluwalia said on Monday.

He also said there was a need to limit subsidy costs. The government subsidises the costs of fuel, fertilisers and some food items through the issue of special bonds, which it does not include in its deficit calculations.

"The economy of the country should record at least 6.7 per cent growth rate this fiscal as the economic conditions are turning better compared to that three months ago," he added. hluwalia added that there was a need for limiting subsidies.

"Subsidy is not a planned item and not a planned expenditure so it doesn't come to us technically. It has been the general position of the government that subsidies should be limited to what we can afford and should be targeted. So both the issues are important," he said.

He further said the economic situation was much more favourable now than it was three months ago.

"India could maintain or improve upon 2008-09's GDP growth of 6.7 per cent, which was the slowest in six years," he said.

Asia's third largest economy grew at nine per cent or more in the three years ending 2007-08. (ANI)