Due to erratic monsoon in almost all regions of the country, many districts are grappling with drought or drought like conditions, raising alarm bell for the government, which is still sticking to a GDP growth target of more than 6% for the current financial year.

Union Finance Minister, Mr. Pranab Mukherjee, on Tuesday said that 161 out of 604 districts of the country are said to have suffered from drought due to deficient rainfall, decreasing sowing by 20 per cent in the ongoing crop season.

The FM said: "One hundred and sixty one districts have been declared drought prone. So far as sowing is concerned, 20 percent would be down." However, he expected the country to report 6 per cent growth rate, given the increased direct tax receipts in the financial year 2010.

Finance Secretary Ashok Chawla said that states are asked to submit reports of loss, caused on account of poor rainfall, for the center to take necessary steps to avoid its adverse impact over economic growth.

Meanwhile, the Indian Meteorological Department (IMD) on Monday revised its monsoon forecast to 87% of the long-period average (LPA) in the June-September season.