Prime Minister Manmohan Singh endorsed the need to completely deregulate petroleum prices, lift subsidies, curb expenditure and enforce strict fiscal discipline, but refused to draw himself into achieving these objectives within a pre-determined time frame.
He also agreed to the larger need for free flow of commodity movement across borders to tame global price rise, but said the concerns of domestic politics would prevail in enforcing such a decision.
Speaking to Indian media at the conclusion of the two-day G20 Summit, Dr Singh said he was first and foremost in the business of politics and it was expected of him to uphold the priorities of citizens in order to stay in business.
"We have to be politicians before becoming statesmen to stay in power," Dr Singh said.
Asked if he saw merit in decontrol of petrol prices, Dr Singh nodded in the affirmative. "I attach great importance to the task of fiscal consolidation. We cannot live beyond our means and have to recognise that money does not grow on trees," Dr Singh said here when asked, while advising the EU to observe strict fiscal discipline, if he had a similar approach at home.
Dr Singh said the 6.4 per cent limit on fiscal deficit imposed in the Budget for the current financial year would have to be respected and expenditure flows balanced. "If we have to cut certain expenditures and subsidies, those will have to be respected, even while looking as disinvestments as a revenue mobilisation measure," the Prime Minister said.