NEW DELHI, OCT. 8: 
A confident-looking P. Chidambaram told the Economic Editors Conference that restoring growth was the primary objective of the Government. Towards this, he said he would implement, disinvest and dilute.
The implementation would be in respect of decisions on FDI in insurance, pension and retail. Disinvestment would be carried out in four more companies; and dilution is related to retrospective tax amendments.
Signalling to the Reserve Bank of India (RBI) that fiscal and monetary policy should work in tandem to contain inflation and stimulate growth, the Finance Mnister said: “A tight money policy has dampened investment as well as growth, particularly in the industrial sector,”.
Talking about growth, he said: “The foremost task before us is to promote savings, channel savings into investments of 37-38 per cent of GDP. The country achieved a high investment rate of 38 per cent in 2007-08 and that year, GDP grew at 9.3 per cent.”
Fiscal consolidation
He also expressed his intention to announce a credible and feasible path of fiscal consolidation beginning this year and ending with the fifth year of 12th plan. Simultaneously, efforts will be made to raise revenue. Such a plan will be based on the Kelkar Panel report. This will include five-year targets for fiscal deficit and revenue deficit. The Kelkar Panel has already submitted its report.