PM's Economic Advisory Council meets, expects 7-7.5 pc GDP growth in FY 23

A meeting of the Economic Advisory Council to the Prime Minister (EAC-PM) was held in Delhi on Thursday. Members felt that a real growth rate of 7 to 7.5 per cent was likely in 2022-23.

According to an official release, all members unanimously agreed that the 2021-22 budget was well taken in all the spheres due to transparency and realism and was reformist and growth-oriented.

Looking beyond the current year 2021-22, members were optimistic about real and nominal growth prospects in 2022-23.

"Other than an element of the base effect, the contact intensive sectors and construction should recover in 2022-23. Once capacity utilization improves, private investments should also recover. Therefore, members felt a real rate of growth of 7 to 7.5 per cent in 2022-23 was likely. However, this should not mean that the Union Budget for 2022-23 should project unrealistically high tax revenue or tax buoyancy numbers," the release said.

It said the 2021-22 budget was applauded because of reform measures as well as transparency and realism in the numbers.

EAC-PM Members were of the view that these dimensions should be carried forward into the 2022-23 budget too, signalling the use of the extra revenue in the form of capital expenditure and human capital expenditure since COVID-19 has led to a human capital deficit.

The members said there should also be a clear roadmap for privatization and the growth orientation of last year's budget should also be maintained.

( With inputs from ANI )

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