GOVT’S FINANCIAL POSITION IS UNDER CONTROL, SAYS JAITLEY

Finance minister Arun Jaitley on Thursday said the government’s financial position was under control despite a blip in economic growth rate seen in the June quarter ahead of the goods and services tax (GST) rollout in July.

The minister said fiscal deficit was under control and the government will maintain its glide path for narrowing the gap between receipts and spending that is met through borrowing.

Current account deficit, which narrowed in the September quarter to 1.2% of gross domestic product, too is under control, the minister told Lok Sabha, while replying to a discussion on the second supplementary demand for grants for the current fiscal.

“It is our commitment to bring down fiscal deficit to 3.2% this financial year,” Jaitley said, adding that a recovery taking place in global economic growth will benefit India as well. “The (global economic growth) curve is moving up slowly, it is obvious that this upward movement is going to help several economies, including India,” he said.

After a three-year low of 5.7% growth in the June quarter on account of production cuts by the industry while preparing for the new indirect tax regime, economic growth expanded at 6.3% in the September quarter. Economists believe effects of the disruption caused by the GST rollout have already bottomed out. Jaitley also assured that the money of all depositors in public sector banks will be protected, despite the apprehensions regarding the Financial Resolution and Deposit Insurance (FRDI) Bill, 2017.