Economy recovering from challenges of last few years: Jaitley

Union Finance Minister Arun Jaitley on Friday said the economy is now recovering from the serious challenges it has faced in the last few years.

"The economy is recovering from the serious challenges it has faced in last few years, basic fiscal data looks good. Retail credit has picked up, corporate credit is still to pick up," Jaitley said at a press

briefing here.

The Finance Minister, who met the heads of PSU banks today, said he had discussed the state of banks with respect to the state of the economy.

"We discussed the state of banks with respect to the state of the economy. Social sector schemes were also discussed. The government will seriously look into bank recapitalisation over the next few

months. We expect the banks to pass on RBI rate cuts in the coming months," he added.

Chief economic adviser Arvind Subramanian had earlier stated that growth was gaining momentum on the basis of spurt in indirect taxes collections.

The increase was spread across all the three categories - customs, central excise and service tax.