The central government yet again made an attempt on Tuesday to dispel the perception that economy has been hurt by goods and services tax in the manner in which it was implemented and reiterated that macro economic fundamentals are strong with GDP growth is poised for a take-off with the economy turning around. The government also presented a detailed road map for economy ahead, Finance Minister Arun Jaitley said. Top amongst the major announcements made today was an “unprecedented” infusion of Rs. 2.11 lakh crore in public sector banks to boost lending. The government also said that 83,677 km of highways will be built in the next five years to “create more jobs, more growth.”
- Mr Jaitley said after growth slumped to a three-year low of 5.7 per cent in the first quarter, his ministry has held detailed discussions, including with Prime Minister Narendra Modi. “When structural reforms happen, there can be some temporary hiccups, but there are a lot more benefits in the medium and long term,” the finance minister said.
- Top officials of the finance ministry made detailed presentations. “The real GDP growth average is 7.5% in the last three years,” said Subhash C Garg, secretary in the department of economic affairs, also stating that a number of indicators show “the worst is over and we are now back on the path to a high rate of growth in the next many quarters to come.”
- Mr Garg said inflation is low, forex reserves are over $400 billion, Foreign Direct Investment is up and the government is on track on fiscal deficit.