Economic Survey 2013-14: top highlights

Survey says price rise remains an issue, calls for overhaul of subsidy regime

The economic survey pegged FY15 GDP growth at 5.4-5.9%, saying that price rise remained a cause for worry, while calling for a complete rehaul of the subsidy regime and increasing tax revenues. Following are highlights of the report:

 

FISCAL DEFICIT

 

* India needs sharp fiscal correction

 

* Fiscal situation of the central government is worse than it appears

 

* Need for subsidy reforms for fiscal consolidation

 

* Recommends raising tax-to-GDP ratio for fiscal consolidation

 

* Shortfall in revenues can be contained through better mobilisation and reforms

 

* External debt remains within manageable limits

 

 

GROWTH

 

* GDP growth seen at 5.4-5.9% in 2014/15.

 

* Downward risk to economic growth due to poor monsoon, external factors.

 

INFLATION

 

* Wholesale Price Index (WPI)inflation expected to moderate by end-2014

 

* Government needs to move towards low and stable inflation through fiscal consolidation

 

* Consumer Price Index (CPI) inflation showing signs of moderation

 

* Needs to create a competitive national market for food

 

SUBSIDIES

 

* Rationalisation of subsidies such as fertilizer and food essential

 

* Need to shift subsidy programme from price subsidies to income support

 

TAXATION

 

* Government needs to move towards simple tax regime, fewer tax exemptions, single rate of goods and services tax