Given the challenges facing our economy, Finance Minister P Chidambaram has done a commendable job, Prime Minister Manmohan Singh on Thursday said hailing the budget.
He said the country needs to create jobs for our growing labour force to the extent of about 10 million persons every year. To do that we need to accelerate the tempo of our growth. He said Chidambaram's budget would reverse the pessimistic mood and lay the roadmap for investments as he expressed confidence of returning to eight per cent growth within three years.
Singh listed fiscal deficit, inflation and current account deficit as three barriers that can affect the realisation of the growth potential of the economy.
"We need, as the 12th five year plan has mentioned eloquently, a growth rate of about eight per cent. This is a growth rate which is consistent with our underlying potential," he said, adding it was a difficult task which cannot be achieved in a single year.
Singh said the Finance Minister has laid out a roadmap which has "plenty of food for every ministry to chew there".
Expressing confidence that India could return to eight per cent growth within three years, Singh said all ministries needed to work together to convert the challenges identified by the Finance Minister into opportunities.