New DelhiThe members of the Prime Minister’s Economic Advisory Council (EAC-PM) met in New Delhi on Thursday and discussed the development prospects of the country.
Members looked beyond the current financial year (FY21-22) as they were optimistic about the real and nominal growth prospects in the next financial year (FY22-23).
According to the statement issued by the council, apart from an element of Aadhaar effect, the contact-intensive sectors and construction market should recover in FY 22-23. Once capacity utilization improves, private investment should recover as well. The members, therefore, felt a real rate of growth of 7 per cent to 7.5 per cent in FY 22-23 and the prospect of a marginal growth of over 11 per cent.
However, this should not mean that the Union Budget for FY 22-23 should project unrealistically high tax revenue or tax buoyancy numbers. The Union Budget for the financial year 21-22 was appreciated for its transparency and realism in numbers, along with reform measures.
The members of EAC-PM were of the view that these dimensions should also be carried forward in the Budget for FY 22-23, indicating utilization of additional revenue in the form of capital expenditure and human capital expenditure, because of the Covid-19 pandemic. Causing a human capital deficit. There should also be a clear road map for privatization and the development orientation of last year’s budget should also be maintained.
The Reserve Bank of India (RBI) had announced several liquidity measures in June this year, including Rs 15,000 crore liquidity window for contact-intensive sectors like hotels and tourism, Rs 16,000 crore special liquidity facility to SIDBI, securities . To increase the maximum exposure limit for loans to MSMEs, small businesses and individuals for business purposes from Rs 25 crores to Rs 50 crores to Rs 40,000 crores for purchase and increase in the coverage of borrowers under the Sankalp Framework Scheme.
Under the contact-intensive scheme, banks can provide fresh credit support to hotels and restaurants; Tourist-travel agents, tour operators and adventure/heritage facilities, aviation ancillary services, ground handling, and supply chain, and other services including private bus operators, car repair services, rental car service providers, event organizers, spas. And beauty parlor, and salon. These sectors were hit by the lockdown amid the severe epidemic.
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