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Economy Survey highlights - Growth to top 8 percent in 2015/16

REUTERS - India can increase investments without borrowing more, a key government report said on Friday, in an indication that Finance Minister Arun Jaitley will stick to debt targets in his maiden full-year budget on Saturday.
The economic survey, the basis for Jaitley's budget for the fiscal year starting April 1, forecast the economy would grow by 8.1-8.5 percent under a new calculation method that makes India the world's top-growing big economy.
The survey was prepared by the finance ministry's chief economic adviser Arvind Subramanian.
Following are the highlights of the survey:
* India must meet its medium-term fiscal deficit target of 3 percent of GDP
* Government will adhere to fiscal deficit target of 4.1 percent of GDP in 2014/15
* Govt should ensure expenditure control to reduce fiscal deficit
* Expenditure control and expenditure switching to investment key
* 2015/16 GDP growth seen at over 8 pct y/y
* Double digit economic growth trajectory now a possibility
* Economic growth at market prices seen between 8.1 - 8.5 percent in 2015/16 on new GDP calculation formula
* Total stalled projects seen at about 7 percent of GDP, mostly in private sector
* There is scope for big bang reforms now
* India can increase public investments and still hit its borrowing targets
* Inflation shows declining trend in 2014/15
* Inflation likely to be below central bank target by 0.5 - 1 percentage point
* Lower inflation opens up space for more monetary policy easing
* Govt and central bank need to conclude monetary framework pact to consolidate gains in inflation control
* Consumer inflation in 2015/16 likely to range between 5-5.5 percent
* Govt remains committed to fiscal consolidation
* India can balance short-term imperative of boosting public investment to revitalize growth with fiscal discipline
* Outlook for external financing is correspondingly favourable
* Estimated at about 1.3 percent of GDP in 2014/15 and less than 1.0 percent of GDP in 2015/16
* Overhauling of subsidy regime would pave the way for expenditure rationalisation

* Liquidity conditions expected to remain comfortable in 2015/16

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