'The Report to the People' here along with UPA chairperson Sonia Gandhi, Singh acknowledged that there is "frustration" among people over corruption and said the government was working sincerely to address it through legislative and administrative measures. He highlighted the initiatives and achievements in various fields including economy, agriculture, education, poverty eradication, healthcare, power generation, internal security and foreign policy. Singh said that despite an adverse international environment, the Indian economy grew at about 7 per cent in 2011-12, which is amongst the highest in the world. "Sustained high rates of growth during the UPA government's tenure have enabled us to pursue our agenda of inclusive and equitable growth," he said. "Despite these real achievements, there are uncertainties and a large unfinished agenda before us," he said. Turning to economic situation, Singh said difficult decisions have to be taken on both spending and revenue mobilisation as he underlined the need for both the Centre and states have to be "fiscally responsible". However, when asked later to specify the tough decisions, Singh told reporters, "let us wait. Sometimes somethings will be obvious". On the perception of policy paralysis, he said, "this can be corrected by reality. Misconceived perceptions can be corrected." "Tough decisions on spending" With government gearing up to announce austerity measures to deal with the fiscal situation, Prime Minister Manmohan Singh said the Centre will take difficult decisions on spending and revenue mobilisation. "Difficult decisions have to be taken on both spending and revenue mobilisation", he said. His statement comes in the backdrop of announcement made by finance minister Pranab Mukherjee recently in the Rajya Sabha that government would roll out austerity measures. When asked by reporters about details of tough measures being contemplated by the government, Singh said, "let us wait. Sometimes, something will be obvious". The Prime Minister during his address specifically flagged the issue of worsening balance of payment and fiscal situation. "I recognise that we face pressures on our balance of payments and that the fiscal situation needs careful management. Determined measures are needed to boost the climate for industrial investment, both domestic and foreign", he added. While the current account deficit (CAD), which indicates the difference between inflow and outflow of foreign exchange, is expected to rise to 4 per cent of the GDP in 2011-12 from 3.3 per cent a year ago, the high crude oil prices will put pressure on government finances. More importantly, steep fall in value of rupee, which crossed Rs 55 to a dollar, will push up the cost of imports, especially the petroleum products and imported fertiliser. The oil marketing companies (OMCs) have been clamouring for increase in retail prices of petroleum products. When asked about declining value of rupee, Singh quipped, "in a market economy, currency goes up and down". The Prime Minister further said that despite an adverse international environment, the Indian economy grew by about 7 per cent in 2011-12, which is amongst the highest in the world. On the opposition charge that decision making in the government is stuck on account of policy paralysis, he said, "this (perception) can be corrected by reality. Misconceived perceptions can be corrected." However, he said, "we have to remove implementation bottlenecks that are preventing large projects from getting off the ground... Determined measures are needed to boost the climate for industrial investment, both domestic and foreign." He also underlined the need to resolve issues relating to land acquisition, resettlement and the environment on priority basis and strengthen food security system by building more storage capacity. Singh further said poverty has declined at twice the rate that it did before the UPA government's tenure and there have been notable successes in agriculture which recorded a growth of 3.3 per cent in the 11th Plan as against 2.3 per cent in the previous Plan. "Rural wages also have increased. Farmers have been given handsome prices for their crops. This year has seen record foodgrain production, crossing 250 million tonnes for the first time in our history. More than Rs 2 lakh crore was disbursed to 2.75 crore marginal and small farmers as loans", he added. Singh further said that efforts were being intensified to pursue affirmative measures to expand opportunities for Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities and women. With 2 years left, Sonia says work and not promises will pay Battling perception of policy paralysis, Congress president Sonia Gandhi on Tuesday acknowledged that the ruling alliance can earn another mandate only on the basis of its actions in coming two years and not promises. Speaking to allies at a dinner to mark the completion of three years of UPA-II, she accused the opposition of being aggressive and making irresponsible statements. "We are aware that only two years are left when we will be seeking a new mandate from the people. We are fully aware that the result of that will not depend on our promises but on the nature of work done by us," Gandhi said in her brief address. She said since UPA took charge of the government, India has been advancing on the growth map in a sustained manner because of which it has been able to provide money for projects of social and rural development. "Because of this the Centre has been able to give that kind of financial assistance to the state government which was never seen earlier," Gandhi said, adding that the government has to sustain the momentum of this development.
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