Economic Survey highlights: FY20 fiscal deficit target may need relaxation

GDP growth pegged at 6-6.5 per cent in financial year starting April 1, up from 5 per cent in current fisca

The Union Finance minister on Friday tabled the Economic Survey 2019-20 in Parliament. Here are the highlights. 

GDP growth pegged at 6-6.5 per cent in fiscal year starting April 1, up from 5 per cent in current financial year.  

Fiscal deficit target for current financial year may need to be relaxed to revive growth.  

Uptick in growth projected in second half of current fiscal based on 10 factors including higher FDI flows, build up of demand pressure, positive GST revenue growth. 

Survey asks government to deliver expeditiously on reforms to revive growth  

Ethical wealth creation key to India becoming $5 trillion economy by 2025.  

Share of formal employment increased from 17.9 per cent in 2011 -12 to 22.8 per cent in 2017-18 reflecting formalisation in the economy.

Theme of Survey is wealth creation, promotion of pro-business policies, strengthening of trust in the economy.  

To achieve GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion over these years on infrastructure. 

As many as 20.6 million new jobs created in rural, urban areas between 2011-12 and 2017-18 among regular wage/salaried employees.  

Regular employment of women rose by 8 per cent in 2017-18 over 2011-12.  

Excessive government intervention in markets, especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom.  

Debt waivers disrupt the credit culture, reduces formal credit to same farmers.

Suggests government to systematically examine areas where it needlessly intervenes and undermines markets.  

Calls for improving governance in public sector banks, more disclosures to build trust.  

Calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts. 

Easing of crude prices lowers current account deficit; imports contract more sharply than exports in first half of current financial year. 

Declining inflation from 3.2 per cent in April 2019 to 2.6 per cent in December 2019, reflecting weakening demand pressure in the economy. 

GST collections grew by 4.1 per cent for the centre during April-November 2019.