Friday, August 25 2006 14:25 Hrs (IST) - World Time -

New Delhi: On the back of a high 9.3 per cent growth in the last quarter of 2005-06, Government today said high growth will be sustained this year with industry growing at 10.4 per cent in first quarter and inflation at less than five per cent now.

The quarterly review of the economy tabled in Parliament, however, said the fiscal deficit at 77,740 crore up to June this year constituted 52.3 per cent of the budgeted fiscal deficit as compared to 36.1 per cent during the corresponding period of the previous year.

The growth in real GDP was estimated at 8.4 per cent in 2005-06. The overall industrial growth was 10.1 per cent during April-June 2006 as compared to 10.4 per cent in the same period previous year.

Manufacturing registered double-digit growth of 11.2 per cent during the first three months of the current year.

The point-to-point Inflation, after peaking at 5.4 per cent on June 17,2006, has come down to 4.8 per cent on August 5,2006.

"The equity valuation as measured by NIFTY and Sensex, is on a high. The economy performed satisfactorily in the first quarter of the current year," it said.

Along with first quarterly report for 2006-07, the quarterly report of the last quarter 2005-06 was also tabled in Parliament which put the overall growth in January-March 2006 at 9.3 per cent as compared to 8.6 per cent during the corresponding period in the previous year.