Union Finance Minister Shri Pranab Mukherjee said that the growth in GDP at market prices at 9.7 per cent for 2010-11 reflects buoyancy in our tax collections. Shri Mukherjee was reacting to the Advance Estimates of National Income for 2010-11 released by the Central Statistical Organisation (CSO) here today. Shri Mukherjee further said that coupled with higher than anticipated nominal growth in GDP will also ensure that our performance on fiscal and revenue deficit targets for the year would be better than the projections in the Budget 2010-11. Gross Domestic Product (GDP) at factor cost is estimated to increase by 8.6 per cent in 2010-11 as per CSO advance estimates. The Finance Minister said that this is in line with the Finance Ministry projections for the year as a whole. 

Finance Minister Shri Pranab Mukherjee said that on the supply side, strong agriculture performance aided by growth in manufacturing and services has helped in restoring high overall growth in GDP for the fiscal year 2010-11. He said that construction activity is also showing improved growth momentum. 

On the demand side, the Finance Minister Shri Mukherjee said while private consumption is estimated to grow at 8.2 per cent in 2010-11 over the last year, the growth in investment is anticipated at close to 9 per cent. He said that the growth in government spending is estimated to moderate significantly to 2.6 per cent in 2010-11. The export growth is projected at 12 per cent and import growth at 6.3 per cent 2010-11, the Minister added. 

Finance Minister Shri Pranab Mukherjee said that the strong revival in private spending and improvement in investment growth is a welcome sign. However, the Finance Minister said that we still have some distance to go before regaining the investment growth witnessed in the pre-crisis period. 

Fiscal targets may be better met due to higher nominal GDP growth and stronger tax collections. Higher-than-anticipated nominal GDP growth, supported by buoyant tax collections and a revival in private consumption and investment, is expected to improve fiscal outcomes; in particular, Fiscal and Revenue Deficit Targets are likely to be better than Budget 2010-11 projections owing to moderating government spending and stronger macroeconomic performance.