‘Eco­nomic prospects look bright in near term’

The Financial Express - - ECONOMY -

New Delhi, Aug 12: In­dian econ­omy is show­ing "bright" near-term prospects, but re­duc­ing fis­cal deficit to 3.5% of GDP in 2016-17 is a chal­lenge be­cause of ad­di­tional li­a­bil­i­ties on ac­count of pay re­vi­sion, the govern­ment said on Fri­day.

The Medium Term Ex­pen­di­ture Frame­work State­ment, tabled by Fi­nance Min­is­ter A ru nJ a it le yin the Ra­jya Sabha, said ma­jor sub­si­dies are ex­pected to de­cline grad­u­ally from 1.5% of GDP in 2016-17, to 1.4% in 2017-18 and fur­ther to 1.3% in 2018-19.

The state­ment said macro eco­nomic sta­bil­ity has im­proved with the con­tin­u­ance of fis­cal pru­dence and lower in­fla­tion par­tic­u­larly due to mod­er­a­tion in crude prices.

"In light of the en­cour­ag­ing­per­for­mance of the econ­omy dur­ing the pre­vi­ous fi­nan­cial year, marked by pick-up in eco­nomic growth, lower in­fla­tion, buoy­ant tax rev­enues, in­creas­ing for­eign direct in­vest­ment flows and the govern­ment's push to re­forms in cru­cial ar­eas in­clud­ing bank­ing, in­fra­struc­ture, power, tax­a­tion. The near term prospects for the econ­omy look bright," it said. PTI

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.