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New Delhi, October 24
The Indian economy is on a strong wicket with sound macro-economic fundamentals, yet some areas need a boost, Finance Minister Arun Jaitley said on Tuesday while briefing the media on the state of Indian economy at the National Media Centre in the National Capital.
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Jaitley said the government has been monitoring the economic situation after GDP numbers.
“We want India to remain a high-growth country although when structural reforms are undertaken, there is a short-term impact,” he said.
“The government has finalised roadmap on the economy. The macro indicators remain strong,” he said.
Economic Affairs Secretary SC Garg said macro parameters of the economy remain sound including fiscal consolidation on course to 3 per cent level.
The long-term GDP growth is poised for takeoff,” he said.
“GST will reduce corruption, formalise economy and the operational issues are being sorted out,” Garg said.
Finance Secretary Ashok Lavasa said the total expenditure on public expenditure this year is Rs 11.47 lakh crore which is Rs 1.2 lakh crore more than last year.
“The government has decided in the next five years an investment of Rs 6.92 lakh crore on building 83,677 km of roads. It would be called ‘Bharatmala programme’.
“9,000 km of economic corridors and inter corridor and feeder routes for 6,000 km.
“National corridors efficiency improvement will be done around golden quadrilateral of 5,000 km. New road routes have been identified for reducing the travel time. Act east for increasing trade through roads. 3,300 km for western and eastern borders. 1300 km in phase 1 of border roads.
“Bharatmala financing of 2.09 lakh crore from market and 1.06 lakh crore from private investment out of total Rs 5.35 lakh crore.
“Big push to rural connectivity. Universal affordable housing to give houses to 3.2 crore people. Bharatmala project approved today will boost investments and jobs,” Lavasa said.
“Three-fold increase in bank advances in last six years at Rs 34 lakh crore,” says Secretary Financial Services Rajiv Kumar.
“Transparent recognition of NPAs led to increase of Rs 4.55 lakh crore. Banks had to increase provisioning to cover NPAs. Stronger banks are need of the hour to push private investment.
“Unprecedented bank capitalisation programme of Rs 2.11 lakh crore approved for generating more jobs,” Kumar said.
Jaitley said economic fundamentals are strong. “Public spending needs to be boosted. Unprecedented infrastructure spending to be raised through roads, digital housing, and rural sector. Reviving private investment is required,” he said.
“Banks did indiscriminate lending in last few years which became NPAs now,” Jaitley said.
Jaitley said the Cabinet took a bold step to infuse Rs 2.11 lakh crore in banks along with reforms.
“Recapitalisation bonds to improve lending capacity of banks. MSME sector to be priority sector of lending,” he said.
From 2008 to 2014, Jaitley said there was indiscriminate lending by banks and NPAs were hidden.
“Recapitalisation bonds structure to be decided, Jaitley said, adding the government will stick to fiscal glide path.
Jaitley said once lending capacity of banks is enhanced private sector investment will increase.
“This is a response to boost lending capacity of banks,” he said.
Jaitley said encouraging response from GST registrations and collection at Rs 93,000 crore. He said Opposition parties have sympathy with cash economy.
