``I expect food price inflation to come down in the next couple of months on the back of an good rabi crop, `` Ahluwalia said at a conference in Mumbai on Friday. Downplaying fears of WPI inflation touching double-digits, he said, ``I don`t think this will happen. I expect WPI inflation to gradually come down...you will see that. With the growth momentum returning, the Commission sees a GDP growth of 8.5% for FY 11 and 9% in the subsequent fiscal. ``I think the economy is doing very well...we have weathered an extra-ordinary crisis...now we are well set to get back to 8.5% in 2010-11 and hope to see 9% growth after that,`` Ahluwalia said. ``We are going to get back to the path of fiscal prudence,`` he said, adding that with the economy improving institutional investments will continue to invest. ``I think the fiscal deficit has been brought down-- economic growth momentum has returned. We are counting on this momentum continuing in the next two years...that is what we predicted and that is what we were expecting,`` the Planning Commission deputy chairman said. He attributed the high food prices to the drought-like conditions last year. ``I think it is mainly because of the drought conditions last year. Excessive speculation and exaggerated reports have also contributed, `` Ahluwalia said. Now, however, with rabi crops coming in food price inflation is likely to decline in the next couple of months, he added. On the government borrowings and whether it would impact private demand, he said, ``There is no need for too much worry about government borrowings next fiscal. The government is expected to borrow Rs 4,570 billion next fiscal. Asked about the poor response on PSU issues that hit the markets recently, he said the relatively poor response did not indicate that the government should slow down its disinvestment plan. State governments should proactively take steps to improve basic infrastructure like health and education, Ahluwalia said.
We are going to get back to the path of fiscal prudence: