Economic Survey: Highlights
Union Finance Minister Arun Jaitley tables Economic Survey in Lok Sabha on Tuesday. The survey will feature economic growth forecasts, suggest policy changes and set the tone for the Union Budget to be presented on Wednesday. Here are some of the main features of the Economic Survey:
* Economic Survey 2016-17 suggests setting up of a centralised Public Sector Asset Rehabilition Agency.
* GDP growth rate at constant market prices for the current year i.e 2016-17 is placed at 7.1 per cent.
* Sharp rise in prices in FY18 may cap monetary easing headroom.
* Economic Survey recommends reforms in labour and tax policies to make the Apparel and Leather sector globally competitive.
* Currency shortage to affect supply of some farm products.
* Need to modify operational framework of Fiscal Responsibility and Budget Management Act (FRBM).
* Outlook for GST collections must be cautious.
* Agriculture sector to grow at 4.1 per cent in the current year up from 1.2 per cent in 2015-16.
* Excise related taxes to fall around 0.1 per cent of FY18 GDP.
* Three main downside risks to FY18 GDP growth forecast.
* FY18 GDP Growth seen in range Of 6.75-7.5 per cent.
* Growth rate of the industrial sector estimated to moderate to 5.2 per cent in 2016-17 from 7.4 per cent in 2015-16.
* Need to seriously consider universal basic income data.
* Service sector is estimated to grow at 8.9 per cent in 2016-17.
* Current account deficit (CAD) narrowed in the first half (H1) of 2016-17 to 0.3 per cent of GDP.
* Economic Survey sees fiscal windfall from Pradhan Mantri Garib Kaayan Yojana, low oil prices.
* The decline in fiscal deficit has continued.
* Inflation is repeatedly being driven by narrow group of food items, pulses being major contributor of food inflation.
* Digital Radio platform to promote digital and connectivity revolution in the Country.
* Inflation based on Wholesale Price Index (WPI) averaged 2.9 per cent during April-December 2016.
* Universal Basic Income (UBI) Scheme an alternative to plethora of State subsidies for poverty, advocates reforms to unleash economic dynamism and social justice.
* Property Tax can be tapped to generate additional revenue at city Level.
* Lower interest rates in FY18 will boost economy.
* CPI based core inflation has remained stable in current fiscal year averaging around 5 per cent.
* On balance, Indian economy may recover back to 6 per cent to 7 per cent in 2017-18.