A day ahead of the Union Budget 2020, the government’s Economic Survey was tabled in Parliament. The Survey estimates the country’s gross domestic product (GDP) to grow at 5 % for 2019-2020. The survey said the GDP numbers would go up to 6-6.5 % by the end of the next financial year (March 2021). The Economic Survey was prepared by Chief Economic Advisor Krishnamurthy Subramanian and his team.
The Survey has noted the sharp fall of the estimated GDP projection of 7% growth for 2019-20 as predicted in last year’s Economic Survey. The fiscal deficit was budgeted at 3.3 % of the total GDP for 2019-2020 compared to 3.4 % the last financial year.
The Economic Survey had a clear message for Finance Minister Nirmala Sitharaman for budget day that she should go easy on the deficit target and announce more space for spendings.
The Survey added India has gone through its worst economic slowdown in a decade. It has been reported that the growth rate slipped to 4.5% between July to September resulting in the loss of millions of jobs.
The Economic Survey said private investment may get crowded on higher spending on infrastructure by the government. While India’s exports may get affected due to continuous global trade tensions.
The Survey advised the real estate sector to cut prices so that they can clear unsold homes, adding the good sales of houses may boost the economy and clear banks’ balance sheets that have been stressed as a result.