Budget 2016: Will the Modi government focus on public spending to boost growth?

QUICK PILL

• It is expected that he government will focus on growth by increasing public spending as private investment stays muted due to an uncertain global environment.
• The Central Statistical Office (CSO) in its advance estimate of its national income for 2015-16 projected a growth rate of 7.6 per cent, the highest in the last five years.

The government will be committed to work towards boosting economic growth, said Economic Affairs Secretary Shaktikanta Das.

The Economic Affairs Secretary termed the projected 7.6 per cent growth for the current fiscal as very significant. His statement comes just a week before the presentation of Budget 2016 by the Finance Minister Arun Jaitley .

It is expected that government will focus on growth by increasing public spending as private investment stays muted due to an uncertain global environment. In a video on the Finance Ministry's Youtube channel, Das said:

"The world economy today is experiencing the kind of the volatility which we never saw earlier. There was a time when we used to say what is going to happen next week in Europe or in some part of the world we do not know. But today, we have come to a position we do not know what is going to happen the very next day in which part of the world".

"We live in a global village. Therefore, whatever happens in any part of the world affects us because India over the last several years is getting increasingly globalised".

The Central Statistical Office (CSO) in its advance estimate of its national income for 2015-16 projected a growth rate of 7.6 per cent, the highest in the last five years.

"So, there is uncertainty, there is volatility all around. I think amid all these problems, amidst when we are in a sea that is in turbulence, India is remaining afloat".

"Not only remaining afloat, this year as the CSO has already given out its estimate, we are expecting a growth of 7.6 per cent which can be considered as very good, given the circumstances. We were used to 8 per cent or 9 per cent growth, but given the problem which the world is encountering, I think 7.6 per cent growth is very, very significant".

He further said the government is committed to not just maintaining growth, but improving it.

"Growth is important because growth leads to job creation, growth leads to more opportunities, more economic activities which lead to more development".

-PTI