New Delhi, June 29: Prime Minister Manmohan Singh said the decision to free up fuel prices was unavoidable and not taken under any pressure. "We need to do the right things for our country. Petroleum subsidies have reached unrealistic levels. Freeing petrol prices was a much needed reform."
 Singh is on his way back to India after attending the group of 20 countries or G-20 summit. He reiterated that diesel deregulation will happen post the petrol move.
 Speaking on the price rise in kerosene and LPG, the Prime Minister said the adjustment was necessary. "We have very high subsidies in kerosene and LPG prices."
 Singh said the interests of the poor will be affected to the least possible extent. "The government will continue to keep prices of kerosene and LPG under regulation." He feels the burden is manageable despite the decision impacting the common man. "I hope the people would appreciate our compulsion to hike prices."

On rollback in fuel prices:
 The Prime Minister showed strong intent in support of this move. He suggested that no rollback will be entertained by the government. There has been opposition to the fuel price hike from within and outside the government. "I have not spoken with Opposition parties on fuel prices. Excessive populism should not be allowed to derail progress."

Policy decisions on anvil:
 The government may take further tough decision on subsidies, Singh promised. "India is likely to see reforms with regard to foreign direct investment in defence and retail. The decisions will be announced in due course."

Tobin Tax and capital flows:
 Capital flows are at reasonable levels and India does not face a situation requiring Tobin Tax, he said. Tobin tax is a levy on all spot conversions of one currency into another. Singh said Tobin tax has merit in particular situations. "If capital inflows into our country both by way of direct investment and by way of portfolio investment have been at reasonable levels, we don't face situations of the kind which would require an imposition of Tobin Tax."

On the G-20 summit:
 Singh, who put forward the growth agenda, said he is very satisfied with the meet. "G-20 leaders view the economic recovery as rather fragile and see the need for a calibrated attempt at fiscal consolidation."
 He stated that one cannot have a one-size-fits-all on fiscal consolidation. "G-20 clarified the scope and manner of fiscal consolidation. I believe fiscal consolidation needs to happen in a growth friendly manner." He stated that the India needs to be cautious on the fiscal consolidation in the European Union."
 The International Monetary Fund, he added, will assess the financial imperatives of G-20 nations.

Fiscal situation and banking:
 Singh said the fiscal situation is a cause for concern. "India is better on the fiscal front than many developed nations."
 He added that the economy is growing at 8.5% per annum and that the banking system remains well managed. Govt to take further tough  decisions on subsidies: PM
New Delhi, June 29: Prime Minister Manmohan Singh said the decision to free up fuel prices was unavoidable and not taken under any pressure. "We need to do the right things for our country. Petroleum subsidies have reached unrealistic levels. Freeing petrol prices was a much needed reform."
 Singh is on his way back to India after attending the group of 20 countries or G-20 summit. He reiterated that diesel deregulation will happen post the petrol move.
 Speaking on the price rise in kerosene and LPG, the Prime Minister said the adjustment was necessary. "We have very high subsidies in kerosene and LPG prices."
 Singh said the interests of the poor will be affected to the least possible extent. "The government will continue to keep prices of kerosene and LPG under regulation." He feels the burden is manageable despite the decision impacting the common man. "I hope the people would appreciate our compulsion to hike prices."

On rollback in fuel prices:
 The Prime Minister showed strong intent in support of this move. He suggested that no rollback will be entertained by the government. There has been opposition to the fuel price hike from within and outside the government. "I have not spoken with Opposition parties on fuel prices. Excessive populism should not be allowed to derail progress."

Policy decisions on anvil:
 The government may take further tough decision on subsidies, Singh promised. "India is likely to see reforms with regard to foreign direct investment in defence and retail. The decisions will be announced in due course."

Tobin Tax and capital flows:
 Capital flows are at reasonable levels and India does not face a situation requiring Tobin Tax, he said. Tobin tax is a levy on all spot conversions of one currency into another. Singh said Tobin tax has merit in particular situations. "If capital inflows into our country both by way of direct investment and by way of portfolio investment have been at reasonable levels, we don't face situations of the kind which would require an imposition of Tobin Tax."

On the G-20 summit:
 Singh, who put forward the growth agenda, said he is very satisfied with the meet. "G-20 leaders view the economic recovery as rather fragile and see the need for a calibrated attempt at fiscal consolidation."
 He stated that one cannot have a one-size-fits-all on fiscal consolidation. "G-20 clarified the scope and manner of fiscal consolidation. I believe fiscal consolidation needs to happen in a growth friendly manner." He stated that the India needs to be cautious on the fiscal consolidation in the European Union."
 The International Monetary Fund, he added, will assess the financial imperatives of G-20 nations.

Fiscal situation and banking:
 Singh said the fiscal situation is a cause for concern. "India is better on the fiscal front than many developed nations."
 He added that the economy is growing at 8.5% per annum and that the banking system remains well managed.

Lastupdate on : Tue, 29 Jun 2010 21:30:00 Makkah time
Lastupdate on : Tue, 29 Jun 2010 18:30:00 GMT
Lastupdate on : Wed, 30 Jun 2010 00:00:00 IST