The PM has issued instructions to the Planning Commission and other government departments to set up a system for independent evaluation of its flagship programs. The government is presently investing large sums to enhance education, health and rural employment, and this step will mark a further progress in this process. The PM recently had a meeting with the commission, the finance ministry and the department of statistics, instructing their mutual cooperation concerning these social sectors.
Prime Minister Manmohan Singh expressed his concern over the steep increase in the global oil and commodity prices but hoped that these will not hinder the economic growth as the government is doing its best to moderate the rising prices.
While laying the foundation stone for Rs 1,750 crore expansion project of Salem Steel Plant in Tamil Nadu on Friday, the PM commented “In the last few months, because of the steep increase in international prices of petroleum products and primary commodities, -inflation and its control have emerged as a major concerns of policy. We have taken steps to moderate the rise in prices. In so doing, we have also tried to ensure that inflation control measures do not hurt the growth momentum we have built up in the last four years.”
The Reserve Bank of India maintained that the hike in the salaries of the government employees will put burden on the finance of the union government.
The government has cleared the recommendations of the sixth pay commission recently that cause increase in the salaries of the employees by 21 per cent.
RBI said that the subsidies and farmer loan waiver have also pressurized the state finance. The central bank indicted that it would continue to tighten the monetary policy despite some ease in the inflation rate.
The external debt of India has increased to 30.4 percent in the year ended March 31, 2008. It has touched the $221.21 billion mark in 2007-08. The high growth in the external debt is witnessed due to loans taken by various corporate houses of the country. However, the amount of external loans taken by the Indian government has declined. The external borrowing has declined by 25.6%.
The short term debts have increased to 34.8%. Debts are surged due to increase in oil import. The appreciation of rupee and depreciation of dollar also helped to increase the external debts. ECB’s have touched the mark of $62.02 billion as on March 31, 2008 by showing a growth of 49%.
departments to set up a system for independent evaluation of its flagship programs. The government is presently investing large sums to enhance education, health and rural employment, and this step will mark a further progress in this process. The PM recently had a meeting with the commission, the finance ministry and the department of statistics, instructing their mutual cooperation concerning these social sectors.
rve Bank of India maintained that the hike in the salaries of the government employees will put burden on the finance of the union government. 
New Delhi, Sep 4 : Continuing its downward journey inflation further
