Highlights of the Mid-Year Economic Review

In its Mid-Year Eco Review, the Govt said it is committed to meeting FY15 fiscal  aim despite difficult odds. 

FY15 revenue estimates were  over-optimistic, the review stated adding that current RBI policy appears to be  historically tight. 

The survey has assumed interest rates will be  held unchanged until March quarter though many feel the interest rate cycle may change in Feb policy meeting. 

Highlights of the Mid-Year Economy Review

Govt: Full year tax growth weaker than expected

Govt: Inflation fall not just due to base effect

Govt: Pick-up in economy in Oct-March critical 

Govt: Inflation fall not just due to  base effect

Govt: Momentum of headline inflation is showing a staggering decline

Govt: FY15 carry-over subsidies seen  around 0.3-1% of GDP

Govt: FY Budget unduly burdened By Deferred Expenditure

Govt: See average inflation in Jan-Mar 16 around 5.8%

Govt: See average CPI inflation in Apr-Jun around 5.4%

Govt:See average CPI inflation in Jan-Mar around 5.3%

Govt: FY15 carry-over subsidies seen around 0.3-1% of GDP

Govt: Need to mull case to review  public invest as growth engine

Govt: Stalled projects need to be  cleared more expeditiously