Union minister Piyush Goyal on Monday said the country’s economic growth is likely to cross 7.5 per cent in the next fiscal. “I believe we will close this year upwards of 6.7 per cent. Next year should to my mind cross 7.5 per cent. All the signs are there for us to see,” Goyal, who is holding key portfolios of railways and coal, said in New Delhi. He was addressing a post budget talk — jointly organised by Ficci, Business Line and Sastra Deemed University.
“From the GDP growth of 5.3 or 6.3 per cent in the last two years of the UPA government, I think that the GDP that BJP-led NDA government has given to this nation is certainly a matter of great satisfaction for us,” Goyal asserted.
Taking a jibe at the previous government, the minister said that “of course the fiscal deficit at 5.9 per cent under the UPA was certainly far better than the fiscal deficit of 3.2 per cent that the BJP is targeting” for the next year. “It’s first time in my life that I heard that 5.9 per cent fiscal deficit in 2011-12 was more fiscally prudent than 3.2 per cent under Modi. This is new economics…Because it seems now that high fiscal deficit is fiscal prudence and low fiscal deficit is imprudence,” Goyal was quoted as saying by PTI.
The Reserve Bank had last week lowered the economic growth projection for 2017-18 to 6.6 per cent but had said that it will accelerate to 7.2 per cent in the next financial year as the rollout of GST stabilises and credit offtake improves. For the next fiscal, 2018-19, the central bank had said that the implementation of the Goods and Services Tax (GST), rolled out on July 1 last year, is stabilising and augurs well for economic activity.