The Prime Minister’s economic advisory council (PMEAC) has said that the government needs to withdraw fiscal stimulus to provide a consolidated budget next week. On Monday, PMEAC has informed that the inflation has become the major concern for the centre and it need to withdraw some of its fiscal stimulus. The budget session has already started and the annual financial budget will be represented next week.

The chairman of PMEAC, Mr. C Rangarajan has told the reporters that he will advice the government to rollback the fiscal stimulus and tightening the fiscal and monetary policies further to handle the situation.

As per Rangarajan, the government needs to follow these steps immediately to protect the economy from inflation. He has also added that inflation of the nation has gone up to an uncomfortably high level. So the monetary and fiscal policies of the government have to be appropriate and tight to manage this alarming condition.

Rangarajan has also agreed with Central Statistical Organisation (CSO) forecast for 2010-11 and said that GDP growth of the country would be around 8.6 per cent this year.