The survey was prepared by the finance ministry's
chief economic adviser Arvind Subramanian.
Following are the highlights of the report:
FISCAL DEFICIT
* 2016-17 expected to be challenging from fiscal
point of view; time is right for a review of medium-term fiscal framework
* 2015-16 fiscal deficit, seen at 3.9 per cent
of GDP, seems achievable
* Credibility and optimality argue for adhering
to 3.5 per cent of GDP fiscal deficit target
INFLATION
* CPI inflation seen around 4.5 to 5 per cent in
2016-17
* Low inflation has taken hold, confidence in
price stability has improved
* Expect RBI to meet 5 per cent inflation target
by March 2017
* Prospect of lower oil prices over medium term
likely to dampen inflationary expectations
CURRENT ACCOUNT DEFICIT
* 2016/17 current account deficit seen around
1-1.5 per cent of GDP
CURRENCY
* Rupee's value must be fair, avoid
strengthening; fair value can be achieved through monetary relaxation
* India needs to prepare itself for a major
currency readjustment in Asia in wake of a similar adjustment in China
* Rupee's gradual depreciation can be allowed if
capital inflows are weak
TAXES
* Tax revenue expected to be higher than
budgeted levels in 2015-16
* Proposes widening tax net from 5.5 per cent of
earning individuals to more than 20 per cent
* Favours review and phasing out of tax
exemptions; easiest way to widen the tax base not to raise exemption thresholds
Source:economictimes
