Economic System May Grow Over 8% In Fiscal Year 2011, Says Pranab

Economic System May Grow Over 8% In Fiscal Year 2011, Says PranabFinance Minister Pranab Mukherjee has announced that the country's economic system may grow more that 8% in fiscal year 2011 after developing at around 7.5% during the existing financial ending March.

Mr. Mukherjee, however, exuded the assurance that inflationary figures will ease in the next few months.

While kicking off the international seminar on transfer pricing in the Capital, Pranab said that special set of Transfer Pricing Rules formed among developing nations with the aid of the Organization for Economic Cooperation and Development (OECD) help to prevent companies from making use of transfer pricing to avoid taxes.

"The framing of Rules for transfer pricing purposes, which allocates profit to tax jurisdictions is an important area which needs cooperation and consultation amongst south-south countries and also amongst north-south countries to have a broad guideline to prevent tax disputes amongst the countries," the minister added.

He also showed trust that by raising its dedicated transfer pricing resources and by bettering their experts capabilities, the Central Board of Direct Taxes (CBDT) will be capable of meeting up rising dispute in management of transfer pricing rule and would boost administration's attempt to mobilize added revenue for growth..

He said, "A carefully-designed stimulus packages announced by the government in the wake of economic slowdown enabled the country to weather the crisis better than many other countries."

Concerning fiscal shortage, he said that the number would only be out when he announces the budget.

The contry's fiscal deficit (FD), which hit 7.9% of the GDP in the second quarter, is likely to be higher at 6.8% of the GDP as administration had borrowed Rs 4.51 trillion. (With Input from Agencies)