Economic Survey 2018 a reflection on govt's commitment to development: Bibek Debroy

Terming the Economic Survey for 2017-18 a reflection of government's commitment to growth and development, Economic Advisory Council to the Prime Minister (EAC-PM) Bibek Debroy today said the emphasis on women's empowerment was a welcome step.

Debroy, according to a release, endorsed the pick-up in growth highlighted in the survey, but was of the view that in 2018-19 the real GDP growth rate is likely to be closer to 7.5 per cent rather than 7 per cent.

"The government is committed to fiscal consolidation and prudent public expenditure. It would be in order if public expenditure is also financed through off-Budget instruments.

"It is rightly mentioned that growth drivers will have to fundamentally emerge through exports, private investments and consumption," he noted.

The statement also said that EAC-PM chairman is of the view that the impact of any increase in crude prices will be more than compensated by recovery in exports, private investments and even private consumption, unless real interest rates remain too high.

The survey estimates a real GDP growth rate of 6.75 per cent for the current fiscal, based on a 7.5 per cent real growth for the second half of the year. For 2018-19 it projects a real GDP growth between 7 and 7.5 per cent.

According to the statement, the survey is also optimistic in its tone because of government's commitment to carry forward structural reforms like GST, deregulation measures, bank re-capitalization and resolution through the IBC process.

It said the survey has stressed that demonetisation was only a blip that did not last beyond mid-2017. Noting that there has also been a lot of debate about job growth, despite the lack of credible data, the statement said, "The survey has specific numbers to show that formal sector employment is much higher than what is commonly suggested.