Arun Jaitley pegs economic growth at 5.5-5.9% this fiscal

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New Delhi | Updated: October 31, 2014 9:50 PM

Finance Minister Arun Jaitley on Friday said economic growth this fiscal could be in the range of 5.5% to 5.9%...

Arun Jaitley said that capital flows to finance Current Account Deficit (CAD) is adequate and further moderation in CAD could be expected this year due to lower oil prices. (Reuters)Arun Jaitley said that capital flows to finance Current Account Deficit (CAD) is adequate and further moderation in CAD could be expected this year due to lower oil prices. (Reuters)

Finance Minister Arun Jaitley on Friday said economic growth this fiscal could be in the range of 5.5% to 5.9%, while the recent decline in global oil prices and domestic food prices point towards lower inflation in the coming months.

Addressing the first meeting of a consultative committee attached to his ministry, Jaitley said that capital flows to finance Current Account Deficit (CAD) is adequate and further moderation in CAD could be expected this year due to lower oil prices.

“The major priority of this government is to bring back growth momentum into economy. Higher growth leads to more revenue collections, better employment opportunities and increase in government’s capacity to finance social sector programs,” an official release said here quoting the minister.

The Modi government’s priorities also include increasing savings, achieving fiscal consolidation, keeping the CAD at moderate level, reviving investment cycle, encouraging manufacturing sector growth and augmenting supply response to contain inflation especially food inflation. Boosting infrastructure sector and exports, rationalising subsidies and reforming direct and indirect taxes are the other areas of focus, the release said.

Jaitley said several steps were taken by the government to spur growth in the economy including in the infrastructure sector. These include extending the 10 year tax holiday for power sector projects, rationalising excise duty, resolving the impasse in the mining sector and encouraging low-cost long term foreign borrowings by Indian companies.

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