Published: Wed, October 11, 2017
Business | By Max Garcia

PM Economic Advisory Council tells govt: Stick to fiscal consolidation road map

PM Economic Advisory Council tells govt: Stick to fiscal consolidation road map

The Economic Advisory Council to Prime Minister Narendra Modi on Wednesday acknowledged that India is going through an economic slowdown but added that it must not deviate from the fiscal consolidation exercise. He said that economic growth, employment and job creation, informal sector and integration of informal sector, fiscal framework, monetary policy, public expenditure and efficiency of public expenditure, institutions of the economic governance, agriculture and animal husbandry were the core issues that were discussed today. "All steps taken by the council will be in consultation with existing bodies", EAC-PM Chairman Bibek Debroy said after the meeting.

"The recommendations of the five member council would be structured around these themes", the official statement said.

However, Debroy categorically stated while the agenda of the council is to suggest recommendations and advise the Prime Minister, any recommendations made or vice versa would not be disclosed to the media.

The Chief Economic Advisor to Ministry of Finance, Arvind Subramanian was present also present at the first meeting along with other economists in the group. The EAC-PM was constituted on September 25 after the GDP growth percentage dipped to a three-year low at the end of the first quarter of the current fiscal. Besides Debroy, the council includes NITI Aayog's principal adviser Ratan Watal as its member and economists Surjit Bhalla, Rathin Roy and Ashima Goyal as part-time members.

"We will come up with a doable solution, keeping in mind next year's budget", Watal said.

"There is a consensus among us about the various reasons that have contributed to the slowdown in the growth rate", Chairman of PMEAC Bibek Debroy said.

"The deliberations of the new Economic Advisory Council to the Prime Minister also reflect its value addition as an independent institutional mechanism to provide informed advice to the Prime Minister on addressing issues of macroeconomic importance related aspects".

Like this: