A day before Modi government is going to present its first budget in the second tenure, Finance Minister Nirmala Sitharaman tabled Economic Survey in Parliament. The survey is prepared by Chief Economic Adviser Krishnamurthy Subramanian. The Union Budget 2019 will be presented on July 5.
Here are highlights of Economic Survey:
- The survey predicts the economy to grow at 7% in 2018-19.
- The survey predicts fiscal deficits at 5.8% in FY 19 against 6.4% in FY 18.
- The survey stated that India needs to grow at 8% per year to reach $5 trillion economy target by the financial year 2024-25.
- It also said that rural wage growth started surging since mid-2018.
- Investment rate seems to have reached the lowest level. It also says that the Investment rate seen higher in the financial year 2019-20 on improved demand.
- It also stated that the economic slowdown between January and March is due to poll related activity.
- It also stated that Greenshoots in investment seems to be taking hold.
- The survey says that NBFC stress is the reason for the financial year 2018-19 economic slowdown.
- It also mentioned trade uncertainty and lower global growth may hit overall exports.
- Total transfer to States rose by 1.2% of GDP from 2014-15 to 2018-19 revised estimate
