Economic Survey focuses on wealth creation, says PM Modi

New Delhi: The Economic Survey focuses on wealth creation for Indians and outlines a multi-faceted strategy to achieve a USD 5 trillion economy through enterprise, exports and the ease of doing business, Prime Minister Narendra Modi said on Friday.

Economic Survey 2019-20 projected the revival of economic growth to 6-6.5 per cent in the next fiscal beginning April 1 but suggested the government should relax the budget deficit target to boost growth from a decade low.

The Survey, released a day before the Union Budget for 2020-21 is presented, called for cutting food subsidy while at the same time looking at businessmen with respect as they create wealth and jobs.

"The #EconomicSurvey 2019-20 focuses on wealth-creation for 130 crore Indians. It outlines a multi-faceted strategy to achieve a $5 trillion economy through enterprise, exports, ease of doing business and more," PM Modi said on Twitter. 

The #EconomicSurvey 2019-20 focuses on wealth-creation for 130 crore Indians. It outlines a multi-faceted strategy to achieve a $5 trillion economy through enterprise, exports, ease of doing business and more. Do read! https://t.co/CZHNOcO7GV

— Narendra Modi (@narendramodi) January 31, 2020

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The Economic Survey for 2019-20 released on Friday said that drop in fixed investment by households from 14.3 per cent to 10.5 per cent explains most of the decline in overall fixed investment between 2009-14 and 2014-19.

Fixed investment in the public sector marginally decreased from 7.2 per cent of GDP to 7.1 per cent during the two periods.

"However, the stagnation in private corporate investment at about 11.5 per cent of GDP between 2011-12 to 2017-18 has a critical role to play in explaining the slowing cycle of growth and, in particular, the recent deceleration of GDP and consumption."

In 2019-20, the Centre`s fiscal deficit was budgeted at Rs 7.04 lakh crore (3.3 per cent of GDP) as compared to Rs 6.49 lakh crore (3.4 per cent of GDP) in 2018-19.The Good and Services Tax (GST) collections -- the biggest component of indirect taxes -- grew by 4.1 per cent for the Centre from April to November 2019. 

However, the uptick in growth of cumulative GST collections for the Centre started in October 2019 and has sustained its momentum in November to December 2019 as well.The growth of bank credit which was picking up in the first half of 2018-19 started decelerating in the second half of 2018-19 and further in the first half of 2019-20.