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21 Nov 2009, 11:39 HRS IST
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Union FinMin Pranab Mukherjee at Economic Editors Conference-2009 in New Delhi. PTI Photo
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  • FM says stimulus to stay, though RBI begins exit

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STAFF WRITER 18:55 HRS IST

New Delhi, Nov 3(PTI) The government today said inflation is not an immediate concern and will continue with the fiscal stimulus measures till the economy recovers fully.

"For the present, I maintain that the fiscal stimulus will have to continue, to allow its impact to fully through the economy...," Finance Minister Pranab Mukherjee said at the Economic Editors Conference here.

Mukherjee's assertion to continue with fiscal stimulus comes within days of the Reserve Bank starting the first phase of exit from accommodative monetary stance on October 27 by raising the amount of money that banks have to keep in gold, cash and government bonds by one per cent age points.

Mukherjee, however, said that it was imperative to return to fiscal discipline "as soon as the current economic circumstances permit us to do so".

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