Economic Survey 2015-16 Highlights


Finance Minister Arun Jaitley tabled the Economic Survey in the Lok Sabha.
Current AffirsFollowing are the highlights of Economic Survey 2015-16:
Indian economy would grow by between 7.0 per cent and 7.75 per cent in the 2016-17 fiscal year that starts on April 1.

Fiscal Deficit
  • 2016-17 expected to be challenging from fiscal point of view; time is right for a review of medium-term fiscal framework
  • 2015-16 fiscal deficit, seen at 3.9 per cent of GDP, seems achievable
  • Credibility and optimality argue for adhering to 3.5 per cent of GDP fiscal deficit target

Inflation
  • CPI inflation seen around 4.5 to 5 per cent in 2016-17
  • Low inflation has taken hold, confidence in price stability has improved
  • Expect RBI to meet 5 per cent inflation target by March 2017
  • Prospect of lower oil prices over medium term likely to dampen inflationary expectations

Current Account Deficit
2016/17 current account deficit seen around 1-1.5 per cent of GDP

Currency
  • Rupee's value must be fair, avoid strengthening; fair value can be achieved through monetary relaxation
  • India needs to prepare itself for a major currency readjustment in Asia in wake of a similar adjustment in China
  • Rupee's gradual depreciation can be allowed if capital inflows are weak

Banking & Corporate Sector
  • Estimated capital requirement for banks around 1.8 trillion rupees by 2018-19
  • Proposes to make 700 billion rupees available via budgetary allocations during current and succeeding years in banks
  • Government could sell off certain non-financial companies to infuse capital in state-run banks
  • Corporate, bank balance sheets remain stretched, affecting prospects for reviving private investments
  • Underlying stressed assets in corporate sector must be sold or rehabilitated

Taxes
  • Tax revenue expected to be higher than budgeted levels in 2015-16
  • Proposes widening tax net from 5.5 per cent of earning individuals to more than 20 per cent
  • Favours review and phasing out of tax exemptions; easiest way to widen the tax base not to raise exemption thresholds

Volume I

Volume II

Economic Outlook, Prospects, and Policy Challenges

State of the Economy: An Overview

The Chakravyuha Challenge of the Indian Economy

Public Finance

Spreading Jam across India's Economy

Monetary Management and Financial Intermediation

Agriculture: More from Less

External Sector

Mother and Child

Prices, Agriculture and Food Management

Bounties for the Well-Off

Industrial, Corporate, and Infrastructure Performance

Fiscal Capacity for the 21st Century

Services Sector

Preferential Trade Agreements

Climate Change and Sustainable Development

The Fertiliser Sector

Social Infrastructure, Employment and Human Development

Structural Changes in India's Labour Markets

 

Powering "One India"



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Published on 2/26/2016 5:01:00 PM

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