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Naxals, inflation big challenges: PM's UPA report

Last updated on: June 01, 2010 21:42 IST

The Prime Minister, Dr Manmohan Singh, released the Report to the People 2009-10 at a function in New Delhi on Tuesday. Following are the opening remarks of the Prime Minister on the occasion:

"It is with both pride and humility that I welcome you all today. We have completed the first year of the second term of the UPA Government. The renewal of our mandate last year showed the faith of the people in our policies and programmes, and in our government's ability to implement them effectively. We are humbled by the enormity of the responsibility that we face. We are also conscious of the tremendous challenges that lie ahead. Under the inspiring guidance of Smt Sonia Gandhi, the United Progressive Alliance, with all its constituents, rededicates itself to giving the country an effective, purposeful and responsive government.

In our second term, we will carry forward the pro-people policies and programmes initiated by our government since 2004. We will also seek new frontiers and new directions that would strengthen our social and economic foundations.

Our government will work to create an environment which will allow our people to realize their full potential. We will lay special emphasis on the concerns and interests of the scheduled tribes, scheduled castes, other backward classes, minorities and women. Agriculture and the well being of India's farmers will receive priority attention.

Our economy is emerging from an exceptionally difficult and challenging period where we had to face an unprecedented global financial crisis and also a severe drought in 2009. Our management of the economy over these years helped us to minimise the effect on our growth momentum. After growing at an unprecedented average of 9% per year for four years the economy slowed down to 6.5% in 2008-09 and then recovered to 7.4% in 2009-10. In the current financial year, the economy is expected to grow at 8.5%. This is one of the best performances in the world and reflects the strong fundamentals which we have built over several years. There are uncertainties on the horizon, but on the whole I look to the year ahead with cautious optimism.

Like other countries we resorted to fiscal stimuli to deal with the fallout of the global slowdown. It has worked well, but now, we must return to the path of fiscal prudence leading to a calibrated reduction in our fiscal deficit. We must work to ensure that the economy grows so that our resources expand, enabling us to spend.

One of the major problems that we face at present is the pressure on prices. This is to a large extent the aftermath of the drought, but it needs firm action. We have taken a number of steps to contain inflation and to protect the vulnerable sections of our society. I am happy that prices have shown a moderating trend in recent weeks. I am hopeful that this trend will continue. We will continue to monitor the situation very carefully, and take whatever corrective steps are necessary to rein in inflation.

Our government made a commitment to the people to give a new deal to rural India. Our flagship schemes towards this end, such as Bharat Nirman, NREGA and the National Rural Health Mission, are progressing well and making an impact on the ground. We are monitoring the performance carefully and will look at innovative ways of enhancing transparency and accountability in the implementation of these programmes. I assure you that funds will not be a constraint when it comes to the core concerns of the Aam Aadmi, whose interests we have been elected to serve.

The Unique ID project is progressing well and I am hopeful that the first set of "Aadhaar" numbers will be issued between August 2010 and February 2011. This project will provide a platform for direct transfer of benefits and subsidies to the poor and will be an important instrument to expand financial inclusion.

The Food Security Bill is under preparation and it is proposed to place it in the public domain for scrutiny and wider consultation.

Nothing can be more precious to us than the future of our children. It is they who will fulfill our dreams, hopes and aspirations for a better tomorrow. The Right to Education Act is a historic step that will give every Indian child the means to become productive, responsible and active citizens of the country. We will work in cooperation and partnership with state governments and other stakeholders to make the fundamental right to education a reality. We have already taken several initiatives in the field of higher education. In the coming year, we will work on reforming the system of medical studies.

Our government will continue to give the highest priority to the empowerment of women, of the weaker sections of our society and of minorities. Our scholarship schemes targeting more than one crore children belonging to the Scheduled Castes, the Scheduled Tribes and the minorities have been well received. We will enhance outlays on such schemes that successfully impact on the welfare of these vulnerable sections. We will give special attention to the North-East, Jammu & Kashmir and the Bundelkhand regions.

Growth in the industrial sector is picking up pace. The Delhi-Mumbai Industrial Corridor and the Dedicated Freight Corridors will create new opportunities for growth and employment. We will work to ensure that micro, small and medium industries are given appropriate support. We are also considering the establishment of a National Social Security Fund with an initial corpus of Rs. 1,000 crores for unorganized sector workers.

Sustaining the environment and responding to the challenge of climate change are major challenges before the government. We are working on a low carbon growth strategy that will build energy security through enhanced energy efficiency and emphasis on renewables, including solar and nuclear power.

We will fight against the scourge of communalism and political extremism. We will fight terrorism root and branch. We will ensure that this great, liberal and plural nation of ours is not weakened by hatred and bigotry. In dealing with the challenge of Naxalism, we will pursue a policy that genuinely seeks to address developmental concerns at the grass roots, while firmly enforcing the writ of the State.

In foreign policy, our core objective is to secure for India an external environment that is conducive to our long-term economic development and to peace and stability in our region. We hope to consolidate our relations with neighbours and all major powers in the years ahead.

In the second year of our second term we re-dedicate ourselves to these objectives and to the welfare of all our citizens. We ask the people of India – come strengthen our hands, so that we may strengthen yours."

External Link: Please read highlights of PM's report here