PM says limited scope for continuing stimulus

PM says limited scope for continuing stimulusLeaders of the 20 richest and most influential countries pledged to continue the stimulus for financially troubled economy. However, the Indian Prime Minister Dr. Manmohan Singh, himself an economist of international repute, said that there is a limited scope for accelerating stimulus, given factors such as RBI's monetary policy and widening fiscal deficit.

Dr. Singh, concluding his two-day visits in Pittsburg, said: "Our response (of stimulus packages) was to a specific domestic situation. It is true that we have limited scope for accelerating stimulus package and our options are limited because of factors like substantial fiscal deficit and Reserve Bank's monetary policies. As of now inflation is not a problem."

Dr. Singh said that a new course of action for healthy economic growth of country will be decided after deliberating the issue with colleagues in India. PM, expressing satisfaction over strong economic fundamentals, said that recent surge in the stock market is the reflection of signs of economic recovery.

The PM termed the summit productive, as leaders of top nations comprehensively discussed a wide range of issues including continuance of stimulus package and strengthening the World Bank.

Dr. Singh said: "We now have to address the issue of the fund quota increase by early 2011. We have agreed to shift 5 per cent share to countries that are under- represented."