Rapid implementation of the Goods and Services Tax and reduction in fiscal deficit should be the thrust areas for the new government that will help the country achieve 7-7.5 per cent growth, Planning Commission deputy chairman Montek Singh Ahluwalia said Saturday.
“The first year of the new government will be its honeymoon period. And after a year, they will have to take the policy decisions. If they do the right thing, we will be back on the growth path. Though achieving 8 per cent may be difficult, 7-7.5 per cent is not,” Ahluwalia told reporters on the sidelines of the India Economic Outlook Conclave.
“Though it is the sovereign decision of every government, my advice to the new government, and certainly to our present government, is that it is certainly a big mistake to take your eyes off the fiscal deficit. We have been reducing it and we should continue to do so,” Ahluwalia said emphasising on the need to reduce the fiscal deficit.
He further said that though investments have reduced from 35 per cent to 32 per cent, even in that scenario the country will be able to achieve its targets.