Economic Survey: Need rapid fiscal consolidation in FY13

The Economic Survey 2011-12 suggests policies to put India on a surer footing for sustained, inclusive growth and all-round development. The survey takes note of the Government fighting malaise of inflation with numerous calibrated steps which constituted a combination of policies to improve supply, especially of food and basic agricultural products and curb fiscal and revenue deficits. Independently, the Reserve Bank of India tightened the monetary policy.

While the battle against inflation had some slowing down effect on growth, there were no signs of major long-term damage or rise in unemployment. The Government thus is in a position to turn its attention more exclusively to inclusive growth, notes the survey. The Survey recommends that Government