While economic reforms have placed the country on a much more secure and sustained growth path, we still have some serious concerns and cannot afford to be complacent. Agricultural reforms have been inadequate and our agriculture continues to be subject to the vagaries of the monsoon. Despite major industrial sector reforms, industrial growth has not accelerated to the double-digit level as expected. Inadequate fiscal adjustment has remained the most intractable problem over the past decade. Public investment in infrastructure and social sectors is inadequate due to falling total public sector savings.
Private investment is constrained due to high real interest rates and inadequate infrastructure.
Budget Strategy 6. Thus, despite the many achievements of economic reforms over the past decade, much remains to be done if we have to achieve our full potential. There is urgent need to further deepen reforms to set the stage for higher growth over the next decade. We have to intensify our effort in fiscal adjustment so that the generations to come are not burdened by our borrowing excesses. The economy has achieved significant acceleration in growth over the last 20 years.