Expected Recovery Could Result In Buoyant Tax Collections: Analysts On Eco Survey 2021
Economic Survey 2021: Chief Economic Advisor Krishnamurthy Subramanian presented the economic survey 2021 on Friday, January 29, ahead of budget 2021. This year, the budget assumes significance as it will be presented at a time when the economy is battered due to the COVID-19 pandemic. The survey projected economic growth of 11 per cent in the next fiscal year. The economy is projected to contract 7.7 per cent in the current financial year ending March 31, according to the International Monetary Fund. (Also Read: Healthcare Spending Must Increase To 2.5-3% Of GDP: Eco Survey Highlights )
Here are some views and remarks by analysts on the economic survey 2021:
Mr. Deepak Jasani, Head of Retail Research, HDFC Securities:
According to the Economic survey 2020-21, India's economy will rebound by 11 per cent in FY22 (nominal GDP by 15.4 per cent), after a 7.7 per cent contraction in the current fiscal, helped by continued normalisation of economic activities, covid-19 vaccination and a host of policy steps taken by the government. It has also hinted at continuation of fiscal expansionary stance. The expected recovery will result in buoyant tax collections and ensure a sustainable fiscal path over the medium term. The comfortable foreign exchange reserves give the much-needed space for enhanced domestic investments.
Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research:
The Economic Survey highlights the government's priority to revive GDP growth in FY22 and further to sustain a growth of 6.5 per cent - 7.0 per cent over the medium term. It has indicated that an expansionary fiscal policy may continue beyond the current year to boost domestic demand and investments. This may imply that the government may not be in a hurry to tighten up on the fiscal front in the near term and may be comfortable maintaining the fiscal deficit at a level significantly over the previous band of 3.0 per cent - 4.0 per cent.
Elias George, Partner and Head, Infrastructure, Government and Healthcare Practice, KPMG:
The Economic Survey focuses on core themes that have now become ever-more vital for India to overcome the consequences of the COVID-19 pandemic and to restore its growth trajectory; towards becoming one of the top-performing major economies in the world. The first focus area is the improvement of individual health outcomes and the provision of community protection to all, deploying best available tools and technology, with collateral expectations of a substantial enhancement in public healthcare spending.
Mr. Anshuman Magazine- Chairman & CEO, CBRE India, South East Asia, Middle East & Africa:
The Economic Survey 2021 tabled by Hon. Finance Minister is evident of the overall resilience that India has shown during the pandemic. In line with the International Monetary Fund, the projection of India's real GDP growth is estimated at 11.5 per cent in 2021-22 and 6.8 per cent in 2022-23, serving a testament to how the nation is all set to become the fastest-growing economy in the next two years.
Arun. M. Kumar, Chairman and CEO, KPMG in India:
The Survey points to the need for ramping up public spending in healthcare as well as in community surveillance and protection; and the need to revive and fortify investments in infrastructure creation as delineated in the National Infrastructure Pipeline. This focus on accelerating infrastructure creation is expected to yield three-fold benefits: improving people's ease of living, priming the economy, and absorbing large numbers of the young into non-farm employment.