New Delhi: A day before the Union Budget to be presented in Parliament, as is customary, the Finance Ministry will release the Economic Survey outlook, its view on the state of the economy on Thursday.
The report is likely to suggest measures to kickstart a double-digit economic growth and present a wishlist for the Indian economy. The economy is expected to hit 6.9 per cent growth for 2011-2012, the slowest since the global crisis of 2008.
The survey could recommend measures to tackle the ballooning fiscal deficit and high inflation. It comes against a backdrop of a high interest rate regime and policy paralysis at the Centre amids uncertain global economic demand.
Chief Economic Adviser Dr Kaushik Basu will be presenting the survey on Thursday.
At the end of a three year term as Dr Kaushik Basu gets set to present his last economic survey, we ask should he even bother. Afterall none of the fresh ideas proposed by him have found any acceptance in the Finance Ministry's staid policies.
Basu has been one of the Finance Ministry's most eclectic chief economic advisors, in his first year at north block, he introduced several fresh ideas to tackle inflation, corruption and boost investment.
However, three years later as he gets set to present his last survey, the team at north block is faced with high inflation, moderating growth, a burgeoning deficit and a weak political economy.
While the FY13 growth is likely to be forecast at about 8.5 per cent, what are the solutions that Basu will propose this time? Afterall, the FY12 growth forecast at 9 per cent is likely to be missed by two percentage points.
Recommendations like FDI in retail have bore the brunt of politics while direct transfer of subsidies is still at trial stage.
The last survey also spoke of the need to foster the culture of honesty and trustworthiness for rapid and robust growth - a suggestion that has possibly been the least implemented. The next year will perhaps tell if FY 13 will be a similar story.
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