You cannot have a corporate tax and then say spend another two per cent.
The Planning Commission on Saturday sought to play down fears that the hike in excise duty on petroleum products would lead to a surge in inflation.
"This year, at the Planning Commission, we expect growth rate will be around 8 per cent. We are not expecting 9 per cent in the year 2011-12," Ahluwalia said while speaking at the convocation ceremony at Vijna Jyothy Institute of Management.
The Planning Commission on Tuesday projected a 8.5-9 per cent economic growth for this fiscal despite a slowdown in industrial growth in July.
Prime Minister Manmohan Singh last month had said inflation would moderate to 5-6 per cent by the end of the calender year.
The Planning Commission has pitched for linking of domestic fuel prices with those in the international market saying it is necessary for country's global "economic reputation".
The Planning Commission said the decision of oil marketing companies to raise petrol price by Rs 3.14 per litre is a good news and will provide credibility to the economic reforms process.
The Planning Commission on Tuesday said that inflation is not coming down as expected and it would be little higher than earlier forecast of close 6 per cent for the month of December.
Planning Commission Deputy Chairman Montek Singh Ahluwalia on Wednesday expressed concerns over rising crude prices which soared to two-year high of $ 102 a barrel in Asian markets.
He was speaking to reporters along with Union Minister of State for Planning Ashwini Kumar on the sidelines of the Regional Consultation with five Eastern States on the Approach Paper to be finalised by the Planning Commission.
No comments could be obtained from the spokespersons of either Reliance Industries Limited or Anil Dhirubhai Ambani Group.
Current account deficit, which represents flow of money out of the country barring capital movements, stood at $4.5 billion in the first quarter of previous financial year.
According to Planning Commission Deputy Chairman Montek Singh Ahluwalia, more than the anticipated growth in the farm sector will make up for the shortfall in the industrial output.
Currently 100 per cent FDI is allowed in the sector.
Ahluwalia also said that markets in India has withstood the pressures of the time very well and has come a long way over the years.
Ahead of the July 24 National Development Council (NDC) meeting, the Planning Commission will come out with a report on the problems in the Naxal-hit areas and the issues being faced by tribals.
The Planning Commission on Thursday described the International Monetary Fund's growth projection of 8.8 per cent for India as optimistic and said the panel would stick to its outlook.
The Planning Commission on Thursday said the surge in global oil prices should be passed on to customers, but favoured having some provisions to safeguard the interests of vulnerable sections of the society.
Addressing an international meet on key inputs for accelerated development of Indian power sector at New Delhi on Tuesday Montek Singh Ahluwalia, Deputy Chairman of Planning Commission said that India's growth projection could be trimmed due to a poor monsoon.
Following widespread drought and floods in various parts of the country, food inflation climbed to more than a 10-year high of 19.95 per cent in December, driven mainly by higher prices of potato, other vegetables and pulses.
The Reserve Bank of India has already raised its key short-term rates by 25 basis points to cool inflation and many experts believe that it will make money dearer to tame inflation in its April 20 annual monetary policy announcement.
He is, however, hopeful that impact of recent reforms initiatives will manifest in the data for the second half of the fiscal.
Planning Commission Deputy Chairman Montek Singh Ahluwalia on Saturday strongly supported the view that petroleum prices in the country should "align with the global price."
The Planning Commission has suggested an investment of up to $30 billion from the burgeoning foreign exchange reserves of over $100 billion in the country.
Mukherjee said uncertainty was still there on oil prices front due to unrest in West Asia and North Africa.
Rajasthan's BJP Chief Minister Vasundhara Raje and Deputy Chairman of Planning Commission Montek Singh Ahluwalia on Monday differed on which Union government was behind the expressway project in the state.
To offset the impact of high import costs, the Planning Commission had said that Coal India Ltd should adopt a pooling formula on prices by combining rates of imported and domestic coal.
The Planning Commission on Tuesday said the Reserve Bank's decision to tighten the money supply will not have any impact on growth and the economy would do better than 8 per cent expansion rate projected by the central bank.
Planning Commission on Monday said India will not be able to achieve USD 1 trillion target for investment in the infrastructure sector during the 12th Plan (2012-17) in view of lower economic growth prospects.
At the annual Pravasi Bharatiya Divas, organised by the government ostensibly to celebrate the country's connection with the 27-million-strong Indian diaspora living in 150 countries, Mr Ahluwalia said last Sunday that India was reaching out to NRIs not for their money, but because it valued the long, socio-cultural footprint all Indians living in India and abroad shared.
Pursuing good economic practices is not always easy politically, but anyone who thinks it is impossible may be 'damming the country', Planning Commission Deputy Montek Singh Ahluwalia said on Thursday.
Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the country would need to spend eight per cent of its GDP on the sector during the 11th Plan to ensure a 10 per cent economic growth.
The rupee will soon join the elite currencies like the US dollar, the euro, British pound and Japanese yen in having a distinct identity.
Favouring labour reforms but without 'hire-and-fire' system, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Friday said rigidities in labour laws were affecting the domestic job market.
Blaming earlier policies for "discriminating" against labour intensive sectors and leading to "significant deceleration" in employment, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Friday
He feels much of the problems arise at the level of state governments rather at the central government level.
The debate over remuneration of CEOs on Monday grew louder with Planning Commission deputy chairman Montek Singh Ahluwalia stating that company heads should not be paid 'indecent salaries'.
Montek also said he did not consider the fall of about two per cent or so in Asian markets, including India this morning, as severe.
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