Indian finance
Minister Arun Jaitley on Thursday said the economy was in a recovery mode with inflation and fiscal deficit under control and despondency giving way to a positive environment.
Jaitley, who got a slew of reform measures approved in the just-concluded Budget session of Parliament, said the focus of the Narendra Modi-led government in the second year would be increasing spending on rural infrastructure, including irrigation and social sector schemes.
“Economy is in a recovery stage, inflation is under control, growth appears to be much better… fiscal deficit, Current Account Deficit (CAD) appears to be under control,” he told reporters here.
Asked if he expects the Reserve Bank to cut interest rate in view of sliding inflation which is in negative territory for past six months to boost growth, Jaitley said, “I expect what every Indian expects.”
Listing positives of the economy, he said services sector is expanding, infrastructure spending has increased and most of the laws that aim to improve the management of the economy have sailed through in Parliament.
“Only last one or two (reform legislations) are left and there the direction seems positive. I think from despondency we have entered the more positive zone,” the Minister said.
Among the reform measures, the government was able to get the legislations regarding insurance, coal and other minerals, black money bill, Companies laws amendment bill and Negotiable Instruments amendment bill approved in Parliament.
Jaitley said that good progress has been made on the Goods and Services Tax (GST) bill which the government was hopeful of getting passed in the Monsoon session in July.
On land acquisition bill, he said, referring it to 30-member Joint Committee was the fastest route of getting an approval as it ran into opposition from the Congress and other parties. .
