Economic survey predicts GDP to be between 6 and 6.5%, wants government to deliver expeditiously on reforms to revive growth
by JKR StaffThe Economic Survey 2019-20 tabled in the parliament on Friday predicted the GDP growth between 6% and 6.5% in the fiscal year starting 1 April. If this prediction holds true, this will be up from the current 5%. The survey also said that the fiscal deficit target for the current financial year may need to be relaxed to revive economic growth.
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The survey also asked the government to deliver expeditiously on reforms to revive the growth. It said that ethical wealth creation was vital to India becoming a USD 5 trillion economy by 2025 adding that to achieve the GDP of USD 5 trillion by 2024-25, India must spend about USD 1.4 trillion over these years on infrastructure.
Here are some other key highlights of the economic survey as reported by news agency PTI:
- The theme of survey is wealth creation, promotion of pro-business policies, strengthening of trust in the economy
- Share of formal employment increased from 17.9% in 2011 -12 to 22.8% in 2017-18 reflecting formalisation in the economy
- 2.62 crore new jobs created in rural, urban areas between 2011-12 and 2017-18 among regular wage/salaried employees
- 8% increase in regular employment of women in 2017-18 over 2011-12
- Excessive government intervention in markets, especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom
- Debt waivers disrupt the credit culture, reduces formal credit to same farmers
- Suggests the government to systematically examine areas where it needlessly intervenes and undermines markets
- Calls for improving governance in public sector banks, more disclosures to build trust
- Calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts
- Easing of crude prices lowers current account deficit; imports contract more sharply than exports in first half of current fiscal
- Declining inflation from 3.2% in April 2019 to 2.6% in December 2019, reflecting weakening demand pressure in the economy
- GST collections grew by 4.1% for the centre during April-November 2019.