Expressing satisfaction on the UPA government's performance in the last 30 months, Finance Minister P Chidambaram said the economy will continue to grow at more than 8% in the next few years."We can look back at this period with considerable satisfaction. Given the state of our fundamentals, we are optimistic of the outlook becoming brighter in the near and mid-term," Chidambaram said at the Economic Editors Conference today.Chidambaram said the economy had witnessed an average growth of over 8% between 2003-06 whereas the growth between 1998-2004 averaged 5.9%. Inflation in the 2003-06 period has also been been moderate, he added.FM promises more tax cuts, reformsAhead of the budget exercise beginning tomorrow, Chidambaram today hinted at further moderation in tax rates, deepening of reforms and cut in wasteful expenditure."A large proportion of assesses pay their taxes now because of moderate and stable tax rates," he said, adding: "There is scope for further moderation. This will, however, depend on greater tax compliance."Broadening the base of reforms has enabled India to become a major economic power, Chidambaram said and added the need for reforms to be further deepened both on institutional and governance fronts."What is needed is not less but more reforms. Reforms to sustain growth at 8-10% for at least two decades. To achieve balanced growth with equity," he said.He also identified agriculture, energy and infrastructure as major challenges that required immediate attention to make the economy more vibrant.Commodity inflation cause for concern: FMVoicing concern over surging prices, Finance Minister P Chidambaram today said adequate supply of essential commodities such as wheat, sugar and pulses needed to be ensured.The WPI-based inflation, which stood at 5.41% for the week ended October 21, was mainly due to increase in prices of 30 essential commodities like wheat, atta, pulses and sugar that have increasd by over 8%, Chidambaram said.Talking on fiscal and revenue deficits, Finance Minister P Chidambaram said while there has been renewed emphasis on public expenditure outcomes, FRBM-mandated fiscal consolidation is largely revenue driven."In my view, equal emphasis has to be placed on revenue mobilisation on one hand and containment of expenditure on the other," he said.To a query, the finance minister said he would be happy if every ministry and department stays within its budget. "That itself is a big containment of expenditure. It is only when we overspend than budgeted, we run into problems," he said."I have reported to the cabinet and requested all my colleagues that once the budget is made, unless there is very compelling necessity, new programmes and new projects should not be floated in the middle of year requiring additional sum of money," he added.Infrastructure problems continue to plague the Indian economy and need to be sorted out for India to realise its full potential, he said. The bulk of Rs 14,50,000 crore required for infrastructure development in the 11th Plan would come from domestic savings and a small share would be chipped in by foreign investment, he added.
