'Constitutional constraints' may have stopped him from unveiling measures to stimulate the economy in the interim Budget for 2009-10 but acting finance minister Pranab Mukherjee asserted on Thursday that the government will not hesitate to announce some steps if the need arises.
Replying to supplementaries during Question Hour in Rajya Sabha, he said he could not announce 'many radical" measures in the Interim Budget presented earlier this week because of constitutional constraints.
"I had constitutional constraints to take too many measures involving too much resources because mandate of the government is coming to an end and new government will take over after elections," he said.
Fiscal correction and monetary changes should go side by side so that impact on the economy is maximum, he said adding, his ministry was in consultation with the Reserve Bank of India for future course of action.
"When I reply to the debate (on the Budget next week), I may be in a position to indicate some more detailed information," he said. "All measures necessary to boost economy will be taken. . .support which the economy requires will be given."
On foreign exchange reserves, the mnister said the nation had enough reserves and 'we need not be worried about that.'
Mukherjee said to overcome economy slowdown, which has been reflected in negative growth in industrial output and exports, more investments will have to be made in sectors that will create more jobs.
"In course of time, it will be possible for us to put it (the economy) on right track," he said.
India is yet to feel the full impact of the global economic meltdown that has already pushed the US, Japan, Singapore and Europe into recession.
In December 2008, India -- the world's second fastest growing economy -- recorded a negative growth in industrial production and further slowdown in exports.
"I don't know how much time it will take to assess the situation," the mnister said. "Problem is complicated, situation is difficult."
"There is no room for complacency," he said.
Mukherjee assured that there was no need to be unduly concerned about the free trade agreement with ASEAN as it was under negotiations and will take some time for finalisation.On the initiative of the US, the G-20 Summit on 'Financial Markets and the World Economy' was held in Washington in November, he noted. It agreed to discuss the effects of the crisis and advance a common understanding of its causes and steps needed to combat it.
