There Is Enough Fiscal Space To Push For Greater Support To Indian Economy: Economic Survey

Economic Survey 2021-22 has asserted that there is enough fiscal space for the government to offer more significant support and clinch the claim of being the world’s fast-growing major economy from China.

Further, the government is confident of holding on to this title for two additional years once they take over this position from China, Financial Express reports.

The growth in the Indian economy will be supported through “widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending,” as per the given survey.

The centre has projected the country’s Gross Domestic Production (GDP) to grow by 8 per cent-8.5 per cent in FY 22-23. This projection is a slightly conservative estimate than the 9 per cent growth projected by the International Monetary Fund (IMF) for the given period.

The survey further cautioned, “the projection is based on the assumption that there will be no further debilitating pandemic related economic disruption, monsoon will be normal, withdrawal of global liquidity by major central banks will be orderly.”

Further, the Economic Survey explained the predications above rely on disruptions in the global supply chain easing going ahead and with the oil price ranging between $70-$75 per barrel.