The finance ministry expects economic growth to accelerate to 7.5 per
cent in 2019-20 from 7.2 per cent projected for the current fiscal.
The growth was 8.2 per cent in 2016-17, the year of demonetization of
currency notes of Rs 500 and Rs 1,000.
"We are looking at nominal growth of 11.5 per cent (for 2019-20).
Our assumption is 7.5 per cent real growth and 4 per cent inflation. We have
been reasonable," Economic Affairs Secretary Subhash Chandra Garg told
Finance Minister Piyush Goyal in the Budget Speech said that India is
solidly back on track and marching towards growth and prosperity.
The past five years have seen India being universally recognised as a
bright spot of the global economy, he said, adding that the country witnessed
its best phase of macro-economic stability during this period.
"We are the fastest growing major economy
in the world with an annual average GDP growth during last five years higher
than the growth achieved by any government since economic reforms began in 1991,"
he had said.
Elucidating focus of the Budget
2019-20, Garg said it has tried to touch a major portion of population of the
country in some way or the other.
"Second is the conviction of the government
that don't give doles but invest in the long-term asset creation with a view to
make life of people better. Invest in the real factors, which build the life,
which can make things more and more productive.
"The other distinguishing feature is that
there should be fiscal consolidation and no expansionary policy, otherwise, it
fuels inflation and crowd out private investment," Garg said.
Citing example, he said enhancement of rural
connectivity, rural electrification and housing for all are efforts in that