Worst is over, now focus on growth: Chidambaram

Finance minister P Chidambaram said on Monday that the ''difficult phase for the economy is over and now the focus would be on achieving higher growth".

Chidambaram was speaking at the pre-budget consultations with economists, heads of banks and finance companies. In his opening remarks, the minister said the reforms announced by the government have had a positive impact on the market.

According to a finance ministry release, Chidambaram said direct tax collections were satisfactory but indirect taxes were short of expectations.

Several leading economists asked the government to levy higher taxes on super-rich, encourage small savings and try to bring down inflation to 4-5 per cent. They also recommended the introduction of inheritance tax as well as a widening of the tax base to increase revenue and contain fiscal deficit.

Inviting suggestions from economists, Chidambaram said economic and political developments in the Eurozone area and the US had their impact on the world economy, including India.

However, he said a slew of reform measures taken by the government had a positive impact on market sentiment. He said that the resolution of the 'fiscal cliff' in the US too had had a positive impact on market sentiment worldwide.