New Delhi (JPN/ Bureau): After presenting the Union Budget for 2010-11, Finance Minister Pranab Mukherjee drew flak from economists for not pushing the momentum of economic improvement activity.

Ready for befitting reply to critics, the Minister this time may speed up liberalization taking into consideration of the slump in foreign investment during the current fiscal, need of more infrastructures and keeping the growth in the fast lane.

According to sources, the government has no other alternative to further the economic liberalization. As 12th five-year plan is going to be effected from 2012-13, the Central government wants to peg economic growth at double digits that requires immediate decision of the government on developmental work.

There is a need of immediate move on issues like increasing the cap on FDI, improving labour law, simplifying the rule of investment in infrastructure. The government has discussed extensively on giving green signal to FDI in retail sector. All ministries have hurdled together on the proposals given by Commerce and Industry Ministry in this connection. Pranab is expected to give go-ahead to the limited FDI in the retail sector.

Former Finance Minister P Chidambaram had announced to increase the cap on FDI in the retail sector from 26 to 49 percent four years ago. The Finance Minister may spike up the cap of FDI in insurance as well as give green signal to foreign investment in pension sector in the coming Budget.

Direct foreign investment has shrunk in the current fiscal, which requires the government to win confidence of investors. RBI also directed the government in its annual report that it should take strategic steps to check the decreasing FDI.