Govt's economic advisor stresses there is no demand-driven inflation yet in the economy
CEA K V Subramanian said that India's banking system is proportionately smaller than the size of the economy and it needs to grow for the country to become a $5 trillion economy
Government's fiscal headroom is crucially linked to a realistic assessment of its net revenue collection
Subramanian is currently visiting lecturer at the Harvard Kennedy School.
The total number of Covid-19 cases in Delhi crossed the 66,000 mark, with the biggest single-day spike of 3,947 fresh infections being reported on Tuesday
According to him, this uncertainty arising out of the health factor will stay until a vaccine for Covid-19 is developed, and spending will not pick up till then
Subramanian also said that the Centre had gone beyond its means to support states, was keeping its options open regarding deficit monetisation, and that the new privatisation policy would be out soon
International passenger travel would remain shut for a long time, not for weeks but for months, he said citing examples of sectors which will continue to be non-functional
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"The reforms that you see today are an articulation of a cogent vision that has private investments at its heart," Subramanian added
India's economic growth slowed to 4.5 per cent in the September quarter from 7.1 per cent in the corresponding period of last year
The government has undertaken a number of measures to arrest the growth slowdown. In September, it announced a cut in the corporate tax rate to 22 per cent from 30 per cent.
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The BJP-led govt announced in the Budget that it will raise a part of its market borrowing by issuing foreign exchange-denominated bonds in overseas markets
The revised fiscal glide path, as per the Survey released on Thursday, envisages achieving fiscal deficit of 3 per cent of GDP by FY 2020-21
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