Survey outlines 3 pronged strategy to push GDP to 7-8%

Tags: News
The government today suggested a three-pronged strategy of containing inflation, pushing tax and expenditure reforms and legal and regulatory frameworks for market economy for achieving 7-8 per cent in coming years.

"Reviving investment, essential for growth of jobs and income, requires a three-pronged approach" to improve India's long term growth prospects, said the Economic Survey, tabled by Finance Minister Arun Jaitley in Parliament today.

As a first step the government should work towards achieving low inflation by putting in place a framework for monetary policy, fiscal consolidation and food market reforms, it said.

Secondly, the Survey underlined the need for tax and expenditure reform, including implementation of Goods and Service Tax (GST) to ensure a more predictable tax regime and thus place public finances on a sustainable path.

Expenditure reforms should also focus on public goods and new designs for subsidy programme.

India also requires legal and regulatory frameworks for a market economy. "This requires repealing the old legacy laws and creating state capacity to address market failures".

It further suggested that regaining growth momentum requires restoration of domestic macroeconomic balance and enhancing efficiency.

"The emphasis of policy would have to remain on fiscal consolidation and removal of structural constraints. Though some measures have been initiated to this end, reversion to a growth rate of around 7-8 per cent can only occur beyond the ongoing and the next fiscal," it added.

For the current fiscal, it said the growth will improve to 5.4-5.9 per cent, after remaining at sub-5 per cent level for past two years.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • If the first 17 editions of Saarc were tragedies, Kathmandu was a sham

    Rarely has a regional grouping such as the South Asian Association of Regional Cooperation (Saarc) promised so much and delivered so little.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

By the power of wind, let there be light

In India, the development of wind power began in the ...

Zehra Naqvi

Being unrealistic can be good for you

Depression is a term that most people use very casually ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture