PM's Economic Advisory Council Projects GDP Growth Of 7-7.5% In FY23
"...members felt a real rate of growth of 7 to 7.5 per cent and a nominal rate of growth of more than 11 per cent in 2022-23 was likely," EAC-PM said.
The Economic Advisory Council to the Prime Minister (EAC-PM) met on Thursday where they discussed the growth prospects of India's economy in 2022-23 and beyond.
The council members concluded a positive outlook for the real and nominal growth prospects in 2022-23.
"Other than an element of the base effect, the contact intensive sectors and construction should recover in 2022-23. Once capacity utilization improves, private investments should also recover. Therefore, members felt a real rate of growth of 7 to 7.5 per cent and a nominal rate of growth of more than 11 per cent in 2022-23 was likely," EAC-PM said.
However, the EAC stressed that the Union Budget for 2022-23 should not be interpreted as projecting unreasonably high tax revenue or tax buoyancy figures. It noted that the Union Budget for 2021-22 received plaudits because of reform measures it undertook, including transparency and realism in the numbers.
EAC-PM members believe that these dimensions should continue in the 2022-23 Budget too, signalling to utilize extra revenue in the form of capital expenditure and human capital expenditure since Covid has caused a human capital deficit.
It further noted that a clear roadmap for privatization should be established, and the growth orientation of last year’s Budget should be maintained.
The government on October 27 had reconstituted the EAC-PM for a term of two years under the chairmanship of Bibek Debroy.
(With Inputs From ANI)