New Delhi, February 25: Union Finance Minister Pranab Mukherjee tabled the Economic Survey 2011-12 in Parliament on Friday. The survey reveals not just the government’s performance over the past year, but also suggests remedial measures to achieve GDP growth between 8.75%-9.25% in the next financial year.
The Economic Survey, which is tabled in Parliament ahead of the General Budget, highlighted food inflation as a concern areas and the slow recovery in the Euro zone as worrisome for the domestic economy.
The economic survey expect fiscal deficit at 4.8% of GDP. This Financial year, inflation may stay elevated in view of crisis in West Asia. The economic survey also expects fiscal deficit at 4.8% of GDP this financial year.
The survey made a strong case for pushing economic reforms, especially raising the cap on foreign direct investment (FDI), with a view to achieving a high growth rate on a sustained basis.
In her address to Parliament earlier in the week, the President, Pratibha Patil, had said, "There is no room for complacency... We have to maintain the momentum for reforms on a wide front."
She had also underlined the need for making "the domestic environment more conducive to investment, encouraging public as well as private investment and domestic as well as foreign investment, particularly foreign direct investment."
The economy recorded a growth rate of 8% in 2009-10, indicating that it has recovered faster from the impact of the global financial meltdown than anticipated earlier.
In the aftermath of the global crisis, the growth rate slipped to 6.8% in 2008-09 from over 9% in the three preceding years.
The Prime Minister`s Economic Advisory Council (PMEAC) and the World Bank have earlier said that India`s growth rate will revert to the pre-crisis level of 9% in the next fiscal.
In view of the recovery, the Economic Survey also underlined the need for getting back on the path of fiscal consolidation by withdrawing the stimulus that was provided to industry to combat the impact of global crisis.
The PMEAC had also suggested withdrawal of the stimulus which was provided to the industry in the form of tax concessions and a hike in public expenditure.
Inflation, however, remains to be a problem area in view of the rising crude oil and commodity prices in the global market. Following the civilian uprising in West Asia, crude oil prices have already crossed $105 per barrel.