More stimulus packages may impact the economy adversely, suggested the Confederation of Indian Industry (CII), while stressing fiscal responsibility for the government, reports PTI.
CII president Venu Srinivasan said that the country maintained growth at about 6% despite the global economic situation, adding that there was no need to raise it to 8-9% artificially.
He said that as the industrial production fell due to the ongoing economic crisis, the government lost tax revenue despite giving three stimulus packages resulting in a greater fiscal deficit of 6% of GDP from the earlier targeted 2.5%. He stressed the need to reduce the fiscal deficit.
Srinivasan said the CII would recommend to the Reserve Bank of India (RBI)to reduce interest rates. He said that the fiscal deficit rose partly due to the ongoing global crisis and would be about 11-12% of GDP including off-balance-sheet items like bonds and loans write-offs.
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