Sanjeev Sanyal tells why govt can’t change fiscal path at first hint of slowdown

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Published: September 17, 2019 5:58:39 PM

Even as India is seeing a demand-driven slowdown, the government can’t change the fiscal path to boost growth as it may have to then lose its credibility, Sanjeev Sanyal, Principal Economic Advisor in the Ministry of Finance, said.

EPFO members, diwali gift for EPFO, EPFO interest rate for 2018-19, EPFO interest rate for FY19, how to withdrawal PF fund, how to claim EPF, Labour Minister Santosh Gangwar, Employees Provident Fund Organisation, EPFOThe tricky part of growth goals is that domestic consumption may have to come down, he also noted.

Even as India is seeing a demand-driven slowdown, the government can’t change the fiscal path to boost growth as it may have to then lose its credibility, Sanjeev Sanyal, Principal Economic Advisor in the Ministry of Finance, said. The government may first try the policy options available within the fiscal glidepath, he told CNBC TV18. The government has so far decided to announce steps within the fiscal path, he said adding a 0.5 per cent fiscal escape clause in the FRBM doesn’t amount to much. The tricky part of growth goals is that domestic consumption may have to come down, he also noted. “We do have space to expand demand in a multiple ways. Supply side slowdown is far more complicated. Even on the fiscal side we will look at it, if it comes to that,” he told CNBC YV18.

On exports, Sanjeev Sanyal said that it’s time for India to take an aggressive view on increasings its exports. India needs to grow at a real rate of 8 per cent on a sustained basis to achieve the exporting nation status, Sanjeev Sanyal said. India must also start looking itself as an exporting nation, he added.

Also read: Indians left with less money to spend after demonetisation; per capita income growth at 5-year low

Talking about the interest rates, Sanjeev Sanyal said that the real interest rates are still very high and transmission of rate cuts has not been smooth. India will have to rely more on monetary policy to lift up the economy which witnessed the lowest growth in eight years as there is limited fiscal space, Sanjeev Sanyal had recently said. The economy recorded a dismal GDP growth rate of 5 per cent in the first quarter of the ongoing fiscal.

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