The Prime Minister Dr. Manmohan Singh has said that the fiscal situation in the country needs careful management and determined measures are required to boost the climate for industrial investment, both domestic and foreign.

Speaking at a function organised at the Prime Minister’s residence in New Delhi yesterday to mark the completion of the third year of the UPA-II Government, Dr Singh said his government is facing pressures on the balance of payments situation. He said that the government will take difficult decisions on spending and revenue mobilisation.

Dr.Singh also underlined the need to resolve issues relating to land acquisition, the resettlement and the environment on priority basis and strengthen the food security system by building more storage capacity. He further said, poverty has declined at twice the rate that it did before the UPA government's tenure.

The Prime Minister said, rural wages have also increased. This year has seen record foodgrain production, crossing 250 million tonnes for the first time in the country’s history.

The Prime Minister further said that despite an adverse international environment, the Indian economy grew by about 7 per cent in 2011-12, which is amongst the highest in the world.

In her brief address, UPA Chairperson and Congress President Sonia Gandhi said that the ruling alliance can earn another mandate only on the basis of its actions in the coming two years and not promises.

She said since UPA took charge of the government, India has been advancing on the growth map in a sustained manner because of which it has been able to provide money for projects of social and rural development.