Reuters | New Delhi
July 9, 2014 Last Updated at 12:49 IST
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.
* 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
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