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    Shaktikanta Das confident of 8 per cent growth in the current year

    Synopsis

    On Tuesday, India’s growth numbers showed that the GDP grew 7.6% in the year ended March, outstripping previous leader China and faster than last year’s 7.2%.

    ET Bureau
    NEW DELHI: Indian economy is well poised to touch 8% growth rate in 2016-17 on the back of a good monsoon, Economic Affairs Secretary Shaktikanta Das has said. “This year, the projections for monsoon are good. With a good monsoon, I think, India will be able to reach 8% growth in the current year,” he said, adding that the overall macroeconomic numbers and fiscal parameters of the country are very robust.

    On Tuesday, India’s growth numbers showed that the GDP grew 7.6% in the year ended March, outstripping previous leader China and faster than last year’s 7.2%. The government also managed to better the fiscal deficit target to 3.92% of GDP as against the revised estimate of 3.94% for 2015-16.

    “We can say with confidence that with all the reform measures, policy initiatives, the direction which the budget has given this year for the economic growth, especially for agriculture and rural sector, all this put together, I think, we are beginning to see the results. This is reflected in the overall GDP and in the fiscal numbers,” the economic affairs secretary said after a Cabinet briefing. Core sector production also continued on its positive trajectory for the fifth straight month, with April growth accelerating the fastest in 17 months at 8.5%.

    Das said the fiscal deficit and revenue deficit during 2015-16 were fully contained and targets were achieved. Revenue deficit showed significant improvement due to increase in capital expenditure of the government. The deficit, which was 3.2% of GDP in 2013-14, improved to 2.9% in 2014-15 and 2.5% in 2015-16.

    The economic affairs secretary also pointed out that Plan expenditure at Rs 4.71 lakh crore in 2015-16 was higher than the Budget estimate of Rs 4.65 lakh crore. The capital expenditure has exceeded budget estimates for the first time in five years.

    “During the current financial year, private sector investment is likely to increase due to increased private consumption and rural demand,” he said, while allaying any concerns over the expenditure due to implementation of the Seventh Pay Commission recommendations.

    “In this year’s budget, the government has provided adequately for the requirements of the Pay Commission recommendations,” he said, adding that a committee of secretaries is looking into the recommendations.

    “Once the report is finalised, exact impact on the exchequer would be known and whatever adjustments are required that will be made,” he said. On the issue of oil prices, Das said there is no cause of alarm and the government is a keeping a close watch on crude prices. Whatever excise collection is from fuel, all that is going towards the infrastructure sector and a small portion towards railways, he said.


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