New Delhi: Pooh-poohing World Bank's (WB) warning of growth and fiscal slippages, government on July 21 said to sing a tune of gloom and doom is quite unfortunate at a time when all economic parameters were looking up.

"As of date, all the parameters are sound with exports going up, balance of payment improving, forex reserves at over $ 83 billion, drought and global slowdown behind us. Today's position is such that we can definitely achieve targets," Finance Secretary D C Gupta told reporters in New Delhi.

The World Bank in its latest 'India Development Policy Review' had warned that 8.0 per cent growth target in 10th Plan will not be achieved without a major revamp of the precarious fiscal situation with primary deficit and public debt worse than 1991 levels.

Gupta said the 10th Plan targets were based on certain assumptions on Tax-GDP (Gross Domestic Product), Incremental Capital Output Ratio (ICOR) and curtailment of Non-Plan Expenditure.

"We are in the second year of the plan period. We still have three more years to go. Looking at present economic scenario, we are certainly optimistic," he added.

Last fiscal, the first year of the Plan, the country was hit by a severe drought and a global slowdown. Despite this, the country managed to grow at 4.3 per cent.

Asked whether his optimism was based on realism in the face of difficult fiscal situation, Gupta said, "Realism does not mean pessimism. Government had broadly achieved its targets last fiscal."

The apprehension that provision for LIC's (Life Insurance Corporation) pension plan, Agri and other subsidies would result in overshooting of fiscal deficit target, Gupta said, "Last year too, government had apportioned sizeable amount for drought relief and yet it was managed without any additional borrowing."

So any apprehension that the subsidies would put pressure on budget target was not correct, he said.

Elaborating on the economy, Chief Economic Advisor Ashok Lahiri said, "I am quite surprised that with $ 83 billion reserves, exports going up and weather Gods kind to us, to sing a tune of gloom and doom is very unfortunate."

He said the government's "fiscal markmanship" have never been bad. "Last fiscal it did not overshoot fiscal deficit targets. How can you say it will overshoot this year?"

It was not for us to learn from IMF (International Monetary Fund) and World Bank that the country needs to check fiscal deficit, Lahiri said, adding Finance Minister Jaswant Singh has himself made it clear in the Budget that fiscal consolidation was one of the "Panch Priorities" (five priorities) of the government.

Dismissing the apprehension that major reform measures like introduction of Value-Added Tax and disinvestment of PSUs (Public Sector Undertakings) was slowed down, Lahiri said, "Introduction of VAT in any federal country including Canada has a tortuous history.

"I would not come to a conclusion that VAT has been shelved," he said, adding it would be put in place once majority of the states are ready.

"We don't want to act in haste and regret in leisure," he said.

PTI