HIGHLIGHTS: Economic Survey 2016-17

Following are the highlights of Economic Survey 2016-17 tabled in Parliament on Tuesday:

• GDP growth for next fiscal pegged at 6.75-7.5%

• Growth this fiscal to be 6.5%

• Prescribes cut in individual I-T rates, real estate stamp duties

• Income Tax net could be widened gradually by encompassing all high income earners

• Time table for cutting corporate tax should be accelerated

• Tax administration could be improved to reduce discretion and improve accountability

• Growth to return to normal as new currency comes in circulation

• Demonetisation to affect growth rate by 0.25-0.5%, but to have long-term benefits

• GST, other structural reforms should take the trend growth rate to 8-10%

• Fiscal windfall likely from Pradhan Mantri Garib Kalyan Yojana, low oil price

• Farm sector to grow at 4.1% this fiscal, up from 1.2% last year

• Fiscal gains from GST will take time to realise

• Demonetisation may affect supplies of certain agricultural products like sugar, milk, potatoes and onions

• Growth rate of industrial sector to moderate to 5.2% this fiscal, from 7.4% last fiscal

• Efforts to collect taxes on disclosed and undisclosed wealth should not lead to tax harassment

• Universal Basic Income Scheme is an alternative to plethora of state subsidies for poverty alleviation.

• Demonetisation should be followed up with fast and demand-driven remonetisation, tax reforms, GST and lower taxes

• These would allow in returning to trend growth in 2017-18, making India the fastest-growing major economy

• Middle class to get affordable housing due to fall in real estate prices

• Remonetisation to eliminate cash crunch by April 2017

• Balance sheet problem of over-leveraged companies and bad-loan-encumbered banks has continued to fester

• A centralised public sector asset rehabilitation agency needs to look after the largest, most difficult cases and make politically tough decisions to reduce debt

• Addressing the twin balance sheet problem will be vital

• Suggests incentivising states for good fiscal performance

• Demographic dividend to peak in next five years

• Fiscal activism embraced by advanced economies not relevant for India

• Swachh Bharat to promote a broader fundamental right to privacy for women

• Service sector estimated to grow at 8.9% in 2016-17.

Union Budget 2017-18: Complete Coverage

Photograph: Amit Dave/Reuters