Interviews
Indian economy shifted to higher growth trajectory
01 Jun '07
3 min read
According to the Economics Division of the Ministry of Finance, the increase in 2006-07 would be approximately 1.4 percentage points in each of these ratios.
I am happy that the results that we report confirm our belief that the Indian economy has shifted to a higher growth trajectory.
I wish to take this opportunity to emphasise, once again, the criticality of growth. High growth generates its own momentum. With high growth comes high savings and high investment which, in turn, reinforce growth itself.
The time has come to shed lingering doubts about the sustainability of high growth and scepticism about the shift to a higher growth trajectory. I would argue that the high growth that we have witnessed in the three years of the UPA Government needs to be sustained with utmost care – because that is the way forward to eradicate poverty, generate quality jobs and improve the human development indicators.
Because we have high growth, we can make bold to claim that we will do everything possible to make the growth inclusive. I acknowledge that more needs to be done in this behalf but, as the Prime Minister has repeatedly assured the nation, we will do more.
We also have with us the Government Accounts for 2006-07. As against a fiscal deficit of 3.8 per cent in the Budget Estimates and 3.7 per cent in the Revised Estimates, the Controller General of Accounts has reported that the fiscal deficit is only 3.5 per cent. The revenuedeficit reported by the CGA is 2.0 per cent, the same as in the Revised Estimates and better than the 2.1 per cent assumed in the Budget Estimates."
I am happy that the results that we report confirm our belief that the Indian economy has shifted to a higher growth trajectory.
I wish to take this opportunity to emphasise, once again, the criticality of growth. High growth generates its own momentum. With high growth comes high savings and high investment which, in turn, reinforce growth itself.
The time has come to shed lingering doubts about the sustainability of high growth and scepticism about the shift to a higher growth trajectory. I would argue that the high growth that we have witnessed in the three years of the UPA Government needs to be sustained with utmost care – because that is the way forward to eradicate poverty, generate quality jobs and improve the human development indicators.
Because we have high growth, we can make bold to claim that we will do everything possible to make the growth inclusive. I acknowledge that more needs to be done in this behalf but, as the Prime Minister has repeatedly assured the nation, we will do more.
We also have with us the Government Accounts for 2006-07. As against a fiscal deficit of 3.8 per cent in the Budget Estimates and 3.7 per cent in the Revised Estimates, the Controller General of Accounts has reported that the fiscal deficit is only 3.5 per cent. The revenuedeficit reported by the CGA is 2.0 per cent, the same as in the Revised Estimates and better than the 2.1 per cent assumed in the Budget Estimates."
Press Information Bureau Government of India
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