New Delhi: Economic Survey 2014-15, tabled by Finance Minister Arun Jaitley in Parliament on Friday, pegs a growth rate of over 8 per cent for the next financial year while inflation has declined by over 6 percentage points since late 2013.
"There is scope for big bang reforms now," said Jaitley while presenting the Economic Survey, a day before presenting the General Budget in Parliament.
The Economic Survey states that for financial year 2015-16, the GDP growth will be between 8.1 per cent and 8.5 per cent.
It said inflation shows a declining trend during the year 2014-15 (April-December). There has a decline in inflation by over 6 percentage points since late 2013. Inflation is likely to be below Reserve Bank of India (RBI) target by 0.5-1 per cent. "Lower inflation opens up space for monetary policy easing," it said.
The survey said India's farm output growth is likely to lag behind 4 per cent aim. However, the government remains committed on fiscal consolidation, it said.
It appeared optimistic about the outlook for domestic macro-economic scenario.
It suggested that overhauling of subsidy regime would pave the way for expenditure rationalization.
It stated that growth in 2014-15 is largely driven by domestic demand and external sector is returning to the path of strength and resilience.
It is of the opinion that the 14th Finance Commission will enhance fiscal federalism.
The foodgrain production for 2014-15 is estimated at 257.07 million tones. The production is set to exceed that of last five years by 8.5 million tonne.
According to the survey, growth will gather pace in Financial Year 2017 following the implementation of Goods and Services Tax (GST) and liquidity conditions are expected to remain comfortable in Financial Year 2016.
It suggested that the government should ensure expenditure control to reduce fiscal deficit.
Comments
0 comment