For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Economic Growth Rate In Current Fiscal Lower Than Projected

By Super
|

The government today lowered the economic growth forecast for the current fiscal to 7-7.5 per cent from previously projected 8.1-8.5 per cent mainly because of lower agricultural output due to deficit rains.

Economic Growth Rate In Current Fiscal Lower Than Projected
The GDP growth, projected in the Mid-Year Economic Review of the Economy tabled in Parliament, is broadly in line with 7.4 per cent growth projection of the Reserve Bank of India. Retail inflation, it said, is likely to be within the target of about 6 per cent. It said the decline in nominal GDP growth will pose a challenge for meeting the fiscal deficit target of 3.9 per cent of GDP.
 

"Slower than anticipated nominal GDP growth will itself raise the deficit target by 0.2 per cent of GDP," it said, adding that "the anticipated shortfall in disinvestment receipts, owing to adverse market conditions for a portfolio that largely comprises commodity stocks, will add to the challenge." While tax collections have been buoyant relative to the growth, "indirect taxes have fared better than direct taxes, probably because corporate profits have not been buoyant, reflecting the slowing nominal GDP growth," it said.

PTI

Read more about: gdp economic growth
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more