EAC gets going, PM Modi rest assured of economic growth

New Delhi: The newly constituted EAC to the Prime Minister Narendra Modi in its first meeting stressed upon accelerating economic growth and employment.

Chief Economic Adviser Arvind Subramanian gave a presentation to the council on methods in order to accelerate economic growth, including investments and exports by using a combination of different policy levers.

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The significant factor here is that industry is seeking fiscal stimulus to tide over the economic slowdown. The economic growth has slipped to a three-year low of 5.7 percent in the first quarter of the current fiscal.

And that is where, the government pegged the fiscal deficit target at 3.2 percent for the current fiscal and 3 percent for the next financial year.

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With the economy slowing down and joblessness becoming a major issue, the EAC-PM has identified 10 major priority areas over which it will prepare a report and submit it over the next six months.

Apart from giving recommendations to the Prime Minister on these issues, the EAC-PM would also focus on the next budget preparation over the coming months, Debroy told reporters here after the meeting.

“We have identified 10 themes that we would initially work on till we have our next meeting one month from now,” Debroy said.

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“The 10 themes identified are economic growth, employment and job creation, informal sector and integration, fiscal framework, monetary policy, public expenditure, institutions of economic governance, agriculture and animal husbandry, patterns of consumption and production, and the social sector,” he added.