Govt can exceed growth target with less obstructions: Jaitley

Finance Minister Arun Jaitley said on Wednesday that the gross domestic product (GDP) growth rate in 2016-17 could exceed the 7-7.75 per cent projected in the Economic Survey if there is less political obstructionism and the government is allowed to push through important Bills like the goods and services tax and the bankruptcy law.

The minister also said he had hoped the 'rain gods would be kinder this year' compared with previous monsoons.

"With all the steps we have taken and hopefully if the next financial year is politically not as obstructive as the previous one, we will be able to push through many more reforms. I am sure we will beat the target that Arvind (Subramanian) has set in the Economic Survey," Jaitley said at a post-Budget meeting with representatives of various industry bodies.

Chief Economic Advisor Arvind Subramanian, in the Economic Survey, projected a growth rate of 7-7.75 per cent for the next financial year. The economic growth rate for 2015-16 has been estimated at 7.6 per cent, the highest in the last five years.

Jaitley also said that while pushing economic reforms and increasing public spending, the government would stick to the fiscal consolidation path.

"While improving public investments and creating an environment for both global and domestic investments to move up, maintaining fiscal discipline was extremely important," he said, adding the nation cannot claim to be the fastest-growing major economy in the world if it doesn't maintain fiscal discipline.

Amid debate over balancing growth and fiscal prudence, Jaitley in his Budget decided to the keep the fiscal deficit target for 2016-17 at 3.5 per cent of GDP, in line with the revised fiscal consolidation road map. The fiscal deficit for FY16 has been maintained at 3.9 per cent, as was indicated in the Budget Estimates for 2015-16.

He also said in his Budget speech that a high-level committee will be set up to review the working of the Fiscal Responsibility and Budget Management. Welcoming the Reserve Bank of India's easing of rules to allow lenders to bolster capital ratios, Jaitley said the government will take all steps and provide resources to keep public sector banks in good health.