‘Government pessimistic about economy’: P Chidambaram attacks Economic Survey 2019

Explained Why the Economic Survey matters

Chief Economic Adviser K Subramanian has apparently rubbished his predecessor Arvind Subramanian's claim that India's GDP growth rates were overestimated.

The government's economic survey, presented to parliament on Thursday, said India will face a challenge on the fiscal front following an economic slowdown impacting tax collections amid rising state expenditure on the farm sector.

The survey also lays down the strategic blueprint for fructifying Prime Minister Narendra Modi's vision of India becoming a 5 trillion dollar economy by 2025.

The CAD increased to $57.2 billion or 2.1 per cent of the gross domestic product (GDP) in 2018-19 as against 1.8 per cent in the previous year. But we now need to be shifting gears to grow at 8 per cent continuously in a sustained manner.

It said that from a macro-economic perspective, the deterioration of CAD may be contained if consumption slows in the economy while an increase in investment and exports become the new drivers of the Indian economy.

During the last five years, India's economy has performed well, it said, adding that the government has ensured that the benefits of growth and macroeconomic stability reach the bottom of the pyramid by opening up several pathways for trickle-down. Demographic trends suggest the need to prepare for the ageing population, which necessitates more healthcare investment and increasing retirement age in a phased manner. Foreign exchange earnings (FEEs) from tourism stood at $27.7 billion in 2018-19 as compared to $28.7 billion in 2017-18, the survey said.

Growth in the industry accelerated during 2018-19 on the strength of improving manufacturing and construction activity.

Under the PM KISAN 2019, around 3 crore 10 lakh small farmers have received the first tranche of two thousand rupees and two crore 10 lakh farmers have got the second instalment, as on 23rd April this year.

In a tweet, Mr Modi said, the survey also depicts the gains from advancement in the social sector, adoption of technology and energy security.

The governments already held a rich repository of administrative, survey, institutional and transactions data about citizens such as birth and death records, crime reports, vehicle registrations, but these data were scattered across numerous government bodies.

"The Economic Survey 2018-19 is the first of the new government and the first under the new Finance Minister, Ms Nirmala Sitharaman", he said.

However, crude oil prices are expected to average $66 a barrel in 2019 and $65 in 2020, according to World Bank. The benchmark policy rate was first hiked by 50 basis points (bps) and later reduced by 75 bps due to weaker than anticipated inflation, growth slowdown and softer global monetary conditions, Finance Minister Nirmala Sitharaman said while tabling the survey in Parliament.



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