India shining

By Vijay Kumar

A press release issued by the Controller General of Accounts, MOF, GOI yesterday shows that our Fiscal position is really good.

++ The overall growth of GDP during the second quarter (July-September) of 2006-07 was 9.2 per cent as compared to 8.4 per cent during Q2 in 2005-2006.

++The Post-Monsoon season rainfall from October l, 2006 to December 31, 2006 was normal/excess in 25 per cent of meteorological sub-divisions.

++ Food grain stocks were 18.50 million tonnes as on November 1, 2006.

++Overall industrial growth was 10.6 per cent during April-November, 2006 as compared with 8.3 per cent in April-November, 2005.

++ Core infrastructure sectors achieved an average growth rate of 7.8 per cent during April- November, 2006 as compared with 5.2 per cent in April-November, 2005.

++ Exports grew by 39.5 per cent in dollar terms during April-November, 2006.

++ Of course imports also increased by 36.5 per cent in April-November, 2006 bringing in more Customs revenue, but is too much of imports good for the economy?

++ Forex reserves (excluding Gold and SDRs) stood at $170.19 billion at the end of December, 2006. Yes we have about 8 Lakhs Crores of rupees in our Forex reserves. Is it good economics to sit on such large reserves without putting them to use?

++ And inflation also grew. The annual inflation rate in terms of WPI (Base 1993-94=100) was 5.58 per cent for the week ended December 30, 2006 as compared with 4.56 per cent a year ago.

++ Tax revenue (net to Centre) during April-November, 2006 was higher by 36.0 per cent compared with an increase of 22.0 per cent in corresponding period last year.

++ In terms of value, Fiscal deficit during April-November, 2006 was lower by 4.2 per cent over corresponding period last year.

++ In terms of value, Revenue deficit during April-November, 2006 was lower by 3.1 per cent over corresponding period last year.