Economy to grow more than 7% in FY18, says Shaktikanta Das

Stepping up the growth pitch, Economic Affairs Secretary Shaktikanta Das on Saturday expressed confidence that the economy will grow upwards of 7 per cent next financial year.

"For this year's GDP growth, we have to wait till March-end. But next year, it will be upwards of 7 per cent," he said.

Drawing on Finance Minister Arun Jaitley's statements, the secretary said there will be transient impact of demonetisation on the economy, but it will not spill over to the next financial year.

A large part of economy is moving towards digital transactions, he noted.

Despite the global headwinds, Das said India's growth remains much stronger.

"It has stayed afloat. Not only stayed afloat, but also doing well. Our commitment is to push growth momentum," he explained.

Listing various reforms measures as announced in the Budget, Das spoke of gains for farmers from integration of spot and derivative market in commodity.

He also dubbed announcement on contract farming and UGC as very big reforms.

Speaking at the seminar, Finance Secretary Ashok Lavasa said the government has already implemented 54 per cent of the recommendations of the Expenditure Management Commission.

"There are many more which are in the process of being addressed," he said. "We are in the process of revising our General Financial Rules (GFR). These are the rules by which all government expenditure is controlled and regulated." GFR is a compendium of general provisions to be followed by all offices of the central government while dealing with matters of financial nature.

These were first issued in 1947 and last amended in 2010.

However, it is felt that many of the rules have become redundant in view of rapid growth of alternative service delivery systems, developments in information technology, outsourcing of services and liberalisation of the system of procurement.

He said it was sometimes felt by the private sector that these rules have been constraining the freedom of decision making.

"So, we are in the process of amending the GFR and before March 31. It is our endeavour to produce a revamped document which recognises the modern ways of management," he said.

Lavasa also said there will be efforts to increase the number of goods and services which can be procured through e-marketplace.

On centrally sponsored schemes (CSS), he said the CSS were reviewed and their number has been brought down to 28.

"Similarly, central sector schemes have been rationalised and the exercise is not completed. We will continue to rationalise these schemes. The objective being that the government should focus on doing a few critical things and utilise resources to derive benefit of people," he added.