Union Minister Arun Jaitley
has said, 7.7 per cent economic growth in the fourth quarter of 2017-18 firmly
established India as the fastest growing major economy in the world.
In a Facebook post, he said those who predicted a 2
per cent decline in GDP growth have been proved wrong. Arun Jaitley pointed out
that the economy rewards structural reforms, fiscal prudence, and
In an article titled 'The Economy and the Markets
Reward Structural Reforms and Fiscal Prudence', Union Minister Arun Jaitley
makes it clear that the Modi government's policies have established India
as the fastest growing global economy, with the high GDP growth rate of 7.7
percent likely to continue for a few years. His article hits out at some
earlier Finance Ministers who had predicted a 2 percent decline in GDP growth
after demonetisation, saying they had been proved wrong.
Arun Jaitley substantiates his assessment under three
He contends that all structural reforms, social sector
schemes and rural development programmes over the last four years, have
resulted in high government spending which has promoted growth.
Where are the Jobs?
He points out that data analysis clearly shows
construction sector expanding by double digits, creating massive numbers of
jobs. Both FDI and Domestic investment are increasing, and the Insolvency and
Bankruptcy Code is unlocking value in Non-Performing Assets. Fixed capital
formation and Manufacturing are growing, and expenditure on rural projects
along with financial inclusion have promoted self-employment.
The Revenue Situation
He also said country has become more tax compliant due
to Demonetisation, GST, digitisation, AADHAR and anti-black money measures.
Income tax returns have shown a 25 percent growth, corporate returns have
increased by 17 percent. Tax-GDP ratio has increased to 11.5 percent, of which
9.8 percent is non-oil taxes to GDP.
But he makes a fervent appeal to citizens to honour
their patriotic duty of being more tax compliant. Saying that the government
has very strong reputation for fiscal prudence, he contends reducing taxes on
oil by 25 rupees, would take the country into a debt trap. He concludes that
the economy and markets reward structural reforms, fiscal prudence, and
macro-economic stability and that the transformation from UPA's
"policy paralysis" to NDA's "fastest growing economy" conclusively.