Following are the highlights of Economic Survey 2013-14 presented by Finance Minister Arun Jaitley in Parliament today:
* GDP growth seen at 5.4-5.9 pc in 2014/15 * Growth rate of 7-8 pc can occur after 2015/16 * Poor monsoon, external factors pose risk to growth * Need subsidy reforms for fiscal consolidation * Raise tax-to-GDP ratio for fiscal consolidation * CAD to be contained at 2.1 pc of GDP in 2014-15 * Wholesale inflation expected to moderate by end-2014 * Retail inflation showing signs of moderation * Reduce spillovers from food to non-food inflation by putting in place a formal monetary policy framework * Contain revenue shortfall via better mobilisation, reforms * Move towards simple tax regime, fewer exemptions, GST rate * Need DTC as clean modern replacement for existing I-T laws * Cutting capital expenditure not good for economy * Changes in tax administration required * Need sharp fiscal correction, new FRBM Act with 'teeth' * Government needs to move towards low and stable inflation through fiscal consolidation
* RBI intervention in forex market behind accumulation of reserves "generally"
* Rupee has stabilised, reflecting an overall sense of confidence in forex and capital markets * Time over-runs in infra project main cause of under achievement in the sector
* Exports still fragile; Iraq crisis a risk * Industrial growth expected to revive gradually over 2-yr * Indian legislation governing business need thorough revamp * Improve business environment by shifting important decision making from inspectors to higher officers * Re-examine laws that empower govt to interfere in markets * Capital controls under FEMA do not support rapidly globalising economy.
