Growth is the winning mantra, calculated risks necessary: Chidambaram

New Delhi: Setting the tone for the general elections scheduled for 2014, Finance Minister P Chidambaram on Saturday said economic growth is the winning mantra and that calculated risks need to be taken to revive growth.

In an interview with NDTV's Vikram Chandra and Shweta Rajpal Kohli, Mr. Chidambaram said a growth target of 6.5 per cent is not ambitious. "I expect that investments will drive growth to over 6 per cent."

"Many more policy steps will be taken soon to boost the economy ... we don't want to lose out on the first half of the year," he added.

On being asked if there was any political pressure on him given the fact that general elections are just 14 months away, Mr. Chidambaram said: "No, there was no political pressure on me ahead of the Budget. My party is happy with the Budget as they realise that the economic space was limited."

Mr Chidambaram's Union Budget for 2013-14 tabled in Parliament on February 28 has been described at best as balanced and pragmatic and at worst as disappointing and lacking substance.

Determined to increase tax revenues, he has proposed a 10 per cent surcharge on those with taxable incomes of more than Rs. 1 crore. The measure will be in place only for a year.

"It is not a matter of shame if you have a high income, but it is really shocking that only 42,800 people and firms admit to earning over Rs. 1 crore ... The government will soon be sending notices to nearly 35,000 people," he said.

"In a limited economic space, fiscal health assumes highest priority," he said.

According to Budget estimates, the government's total expenditure will rise by an unexpectedly high 16 per cent in the fiscal year beginning April 1, 2014, to Rs. 16.65 trillion, while fiscal deficit for the current year will fall to 5.2 per cent of the gross domestic product (GDP), besting a revised target of 5.3 per cent.

The Finance Minister said he was confident of reining in inflation at 4.8 per cent levels in the next financial year.

"In December last year, when we took stock of the overall economy, we came to know that many ministries haven't spent even 75 per cent of what was allotted to them. So, we can say there have been savings," Mr. Chidambaram said.