Govt taking steps to 'sustain growth momentum': Jaitley

Asserting that the economy is being constantly reviewed, Finance Minister Arun Jaitley on Tuesday said that government has decided on the steps to be taken to "sustain the growth momentum".

The Union Government has drawn major flak from the opposition parties over the dipping GDP growth numbers since demonetisation and the implementation of GST.

"There have been lot of discussions and reviews of the economy in the past few weeks within the ministry..When results of the GDP of the first quarter came out then I had said that we will be ready for the response," the FM said.

Ensuring solid fundamentals

Jaitley said that India has remained world's fastest growing large economy for the past three years, adding, "The Government has decided on the steps needed to sustain the growth momentum."

The government data in August showed that India's Gross Domestic Product grew by 5.7 per cent during the first quarter (April-June) of the financial year 2017-18. The GDP growth rate for the same quarter last year was 7.9 per cent.

Increasing self reliance

Meanwhile, Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg said There is very low level of current account deficit, adding that it is within safe range below 2 percent. Garg also termed the GST as the biggest reform and demonetisation as a battle against black money.

Consistent inflation control

Finance Secretary Ashok Lavasa said "effective and targeted Government spending is the main priority of the government."

"The biggest component of road building program, is the BharatMala program. 34,800 kms of roads to be built..About 2000 km of coastal roads will be constructed in first phase of BharatMala," he said.

Real GDP growth projection

Hours after the government announced first quarter GDP growth in August, Jaitley had said that slowing of the GDP was a "matter of concern".

In February, Jaitley had said that the drop in economic activity due to demonetisation was only transient and its effect would not spill over to the next financial year.

Solid fundamentals

The IMF had earlier this year said demonetisation would have only short term impact on the economy and it would bounce back to its expected growth of more than eight per cent in the next few years.

OneIndia News