India has done well on fiscal and economic parameters and the GDP growth can touch 8% in the current fiscal with good monsoon, global headwinds notwithstanding, the finance ministry said on Wednesday.
“This year the projections for monsoon are good. We hope that the monsoon will be good. With a good monsoon, I think India will be able to reach 8% growth in the current year,” said economic affairs secretary Shaktikanta Das.
Das was talking to reporters along with telecom minister Ravi Shankar Prasad after the cabinet meeting.
Das said the fiscal deficit and the revenue deficit during 2015-16 were fully contained and targets were achieved.
“Our fiscal and micro and macro economic parameters are very positive,” he said.
Country’s economy grew by 7.9% in March quarter to consolidate its position as the fastest growing major economy, leaving behind China, with a five-year high growth rate of 7.6% for 2015-16 on robust manufacturing growth. The growth was 7.2% in 2014-15.
Das said overall macroeconomic numbers and fiscal parameters of the country are “very very robust”.
Government was “bang on target” on the fiscal deficit front. The fiscal deficit during 2015-16 was contained at 3.9% of the GDP, in line with the budget projections.
Revenue deficit showed significant improvement due to increase in capital expenditure of the government. The deficit which was 3.2% of GDP in 2013-14 improved to 2.9% in 2014-15 and 2.5% in 2015-16.
The secretary said the Plan expenditure at Rs 4.71 lakh crore in 2015-16 was higher than the budget estimate of Rs 4.65 lakh crore. The capital expenditure has exceeded budget estimates for the first time in five years.
“We can say with confidence that with all the reform measures, policy initiatives, the direction which the budget has given this year for the economic growth, especially for agriculture and rural sector, all this put together I think we are beginning to see the results. This is reflected in the overall GDP and in the fiscal numbers,” Das said.