• PAGE ONE
• INDEX
• HOME

Sinha expects recovery after investment hike

Our Bureau

NEW DELHI, Sept. 6

THE Union Finance Minister, Mr Yashwant Sinha, has expressed his hope that the economic downturn will be reversed with the step up in investment in key areas that have been identified at the initiative of the Prime Minister.

Speaking to newspersons on the sidelines of a conference on urban governance, Mr Sinha refused to comment on the IMF's growth forecast of 4.5 per cent and 5.7 per cent for 2001 and 2002.

``There are so many growth forecasts floating around that I do not wish to comment on it. As far as the Government is concerned, we are never in the habit of making any projections of economic growth. So it is not possible for me to give my forecast on t he growth of the economy this year,'' he said.

The Finance Minister also noted that the economic slowdown was not just India-centric. There has been a slowdown all over the world, and it is but natural that it has rubbed off on India. He said the Government was trying to ensure that the global recess ion has only a limited domestic impact.

Earlier, addressing the closing session of the ``Good Urban Governance Campaign'' organised by the Ministry of Urban Development & Poverty Alleviation and the UNCHS, he pointed out that there has never been a dearth of resources for viable investments es pecially urban infrastructure. The financial institutions and banks were willing to lend for such investments as long as there was a proper plan in place and adequate returns.

For that matter, he said, when the Prime Minister had mooted the ambitious national highway development project involving an investment of over Rs 54,000 crore, everyone had said that the money would never be mobilised. But at the review meeting held on Wednesday, ``we were told that Rs 30,000 crore has already been lined up for the first phase of the project (of 4,000 sq km). The remaining money would similarly be lined up when the second phase begins.

``As long as the resources are being invested in viable projects there will be no shortfall. It is only for unviable projects and untargeted subsidies that the Government cannot spend such huge amounts,'' he said.

Pic.: The Finance Minister, Mr Yashwant Sinha, with the Minister for Urban Development and Poverty Alleviation, Mr Anant Kumar, at the closing session of `Good urban governance campaign' in the Capital on Thursday.

Picture by Ramesh Sharma