India's fiscal stimuli will grow further: Mukherjee

BELEIVE ME: The income growth is important for us but it is more important for resources that it brings in, says Mukherjee.

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New Delhi: Finance Minister Pranab Mukherjee on Tuesday said fiscal stimuli packages announced since December last year (2008) will continue even though the central bank had indicated a phased exit in its monetary policy update in October.

"For the present, I maintain that the fiscal stimulus will have to continue, to allow its impact to fully run through the economy," said Mukherjee.

"It is, however, an imperative to come back to the path of fiscal prudence as soon as the current economic circumstances permit us to do so," he said.

"Fiscal prudence is critical for maintaining a stable balance of payments, moderate interest rates and steady flow of external capital for corporate investment."

According to the Finance Minister, the first challenge of the Government was to take the economy back to the high growth path of 8.5 per cent to 9 per cent per annum, and even beyond, at the earliest and to ensure that it can be sustained for the next few decades.

"For us the growth of income is important but it is more important for resources that it brings in," Mukherjee said adding these provide the means to bridge various critical gaps that remain in India's development, particularly for the welfare the vulnerable segments.