New Delhi, Feb 27 (IANS) Contrary to what Finance Minister Arun Jaitley has earlier said about reforms not being about a few big bang ideas, the government’s Economic Survey 2014-15, projecting the country’s growth at over 8 percent for the next fiscal, said Friday “there is scope for big bang reforms now”.
“As the new government is to present its first full year budget (Saturday), it appears that India has reached a sweet spot and that there is a scope for big bang reforms now,” the finance ministry said detailing the highlights of its annual report card on the stae of the economy.
“The Economic Survey taking into consideration the change of base year by the Central Statistics Office of the National Accounts series from 2004-05 to 2011-12, states that growth at market prices for 2015-16 is expected to be 8.1-to 8.5 percent,” it said.
The growth for the current fiscal has been pegged at 7.4 percent.
Earlier this month government statisticians came out with GDP data calculated with the new base year resulting in numbers showing upward economic growth, but which makes it harder for the finance minister to assess the size of the fiscal stimulus required to help boost the economy.
The GSO estimated GDP growth during 2014-15 at 7.4 percent as compared to 6.9 percent in 2013-14. It has also revised the growth rate for the first half of 2014-15 to 7.4 percent from the 5.5 percent it had earlier reported under the old method.
In this connection, the survey said the country can balance short-term boosting of public investment for economic growth along with “fiscal discipline”.
Over the medium-term, India must adhere to the medium-term fiscal deficit target of 3 percent of gross domestic product (GDP), it added.
“Reduce fiscal deficit over the medium term to the established target of 3 percent of GDP,” the survey said.
Major legislation to effect various pieces of reform tabled by the NDA government in parliament in the ongoing budget session include the contentious ones amending the land acquisition act and for raising the foreign equity limit in the insurance sector.