Will take tough decisions,can’t be divorced from reality: FM

Mukherjee also indicated that while an easing of interest rates is on the cards,rising prices of crude could impact the quantum of the rate cut by the central bank.

“In meeting the targets under the (expenditure) roadmap,I am conscious of the fact that the government would need to take and implement some difficult decisions in the coming months. We cannot go on with the approach that is divorced from the reality. But I believe that Budget is not the only exercise through which all the work is to be done because I cannot ignore the ground reality that mere announcement of decisions,if it cannot be pursued,is serving no purpose as it happened in the past,” he said at an event organised by FICCI. Crude oil prices are hovering at around $125 a barrel — India imports about 80 per cent of its crude oil needs.

“Core inflation has moderated in the past three months and in the coming months we are looking at reversal of the policy rate,which should help in improving business sentiments,” Mukherjee said.

On the draft CAG report on coal block allocations that claimed a Rs 10.7-lakh crore loss,he said: “After obtaining comments of the ministries,90 per cent of the issues raised by the CAG (Comptroller and Auditor General of India) are dropped. That is the normal practice and it is going on for the last 150 years…I have repeatedly stated (that the CAG’s job is) to find out fault and not praise the government…what is new if irregularities are found out in the CAG report and those are to be addressed by Parliament.”