Budget 2017: Reiterating what Finance Minister Arun Jaitley said in his Budget speech this year, DEA Secretary Shaktikanta Das today said that demonetisation will have a transient effect on the economy. “The impact of demonetisation will be transient and we do not expect it to spill over to the next year,” Shaktikanta Das said.
Speaking at a post-Budget 2017 session organised by FICCI, Shaktikanta Das expressed optimism in the next fiscal year, the Indian economy will grow above 7%. “The GDP growth for the next year will be upwards of 7%,” he said.
According to Das, many people have now moved to digital transactions post demonetisation. “We can no longer see queues outside bank branches for cash. A large part of the economy is now moving to digital transactions,” he said.
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Das cautioned against global headwinds in the coming quarters. “Global headwinds have become stronger,” he said. Talking about the various Budget proposals, Shaktikanta Das said that the huge amount of public investment announced in the speech will propel growth. “The public investments announced by the government will have a multiplier effect,” he said.
FM Jaitley on February 1 presented the Union Budget for the fiscal year 2017-2018. The Budget largely focused on increased public expenditure, especially in the rural areas and on infrastructure. Industry analysts and markets have largely given a thumbs up to the Modi government for its Budget. The Union Budget was special this year, not only on account of the fact that it was preponed, but also for the government’s move to combine the Railway Budget as part of the main Budget. Indian Railways has been allotted Rs 55,000 crore from the government for the upcoming fiscal, while the total Budget for the Railways is pegged at Rs 1.31 lakh crore.