Meanwhile, the minister of state for finance Jayant Sinha said power has been given to banks to recover money from debt-ridden promoters
Finance minister Arun Jaitley tabled the NDA government's Macro-Economic Survey 2015-16 in Parliament on Friday. According to the survey, the government sees the economy growing at 7-7.5 percent. It further says the medium-term growth trajectory is seen at 7-7.75 percent with downside risks on the back of global economic scenario.
The Economic Survey states: "India's macro-economy is robust, and it is likely to be the fastest growing major economy in the world in 2016. While at the same time, India also faces huge challenges such as exploiting demographic dividend through major investments in health and education, addressing the challenges of climate change and agriculture."
The government further sees the economy growing at 8 percent in the next couple of years.
Additionally, the government also believes that fiscal deficit at 3.9 percent in FY16 is achievable. However, the survey indicates that if recommendations of the 7th Pay Commission are implemented, it will complicate the FY17 fiscal task.
As far as the current account deficit (CAD) for FY17 is concerned, the government sees it at 1-1.5 percent of GDP. "The current account deficit is likely to be more than fully financed through stable flows," the survey states.
The economic survey is prepared by the Chief Economic Advisor Arvind Subramanian.