BENGALURU: The Financial Year-2015 officially takes off. The Economic Survey is presented in the Parliament. This is the flagship annual document of the Ministry of Finance that gives a detailed review of the country’s development.
“A clear political mandate for reform and a benign external environment now is expected to propel India on to a double digit trajectory”—so says the Economic Survey 2014-2015. What does this really mean?
The Economic Survey shows that India has reached a sweet spot where it needn’t borrow from external sources and is in a position to increase its investment. The survey gives a boost to Arun Jaitely, a day ahead of his maiden Union Budget.
This documented proof that shows India has more chances to fly high and the investors are finally able to see a great scope for growth in India. Now it is in the hands of Jaitely and Modi to take forth this cyclical recovery into sustained boom. Meanwhile the credit rating agencies are keen on fiscal consolidation in India and Jaitely cannot afford to disappoint them. There is a lot more scope for big bang reforms to flush into India. Since Modi has done his part by setting a vision for India, it is Jaitely’s turn to execute it into actions.
Since India is now in a position to generate public investments Jaitely is likely to stick to debt targets this year round. And the golden rule now is that the state governments can only borrow over the limit only if it is for investment purposes and not to fund the existing expenditures. This means that the government has to strictly cut down the subsidies which rationalize expenditure. And the easier way to keep the man on the road happy is by reducing the tax rates instead of giving subsidies that give no returns.
Does Modi mean business or welfare? Is a question that can get answers only tomorrow.
Also Read: Economic Survey 2015: India's Innovation Capacity Lags Most BRICS Nations
Economic Survey Pegs India's Growth At Over 8 Percent, Says Inflation Easing
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