Jaitley to meet economists on Saturday ahead of Budget

In an unprecedented move, Finance Minister Arun Jaitley has called a meeting with economists just two days before he presents Union Budget for 2016-17 on Monday.
Besides Jaitley, Minister of State for Finance Jayant Sinha and other senior officials of the finance ministry will be present at the meeting with economists on Saturday morning.
Officials confirmed the 90-minute meeting, but refused to say what the agenda was.
"CEA may brief the participants about the economic situation both global and domestic and may also brief about the economic analysis of micro and macro-economic situation made in the Economic Survey 2015-16 and the likely state of economy in the coming year and the steps to deal with the same, a Finance Ministry spokesperson said.

The move is unusual as no finance minister before has called a meeting with economists two days before the Budget. Also because, by Saturday, the Union Budget would have been finalised, barring some last-minute changes.
Industry officials said the last-minute meeting may be to get a grip on some quick-fix measures to package a bitter pill for the economy.

It is being widely speculated that the government may not stick to the fiscal deficit target of 3.5 per cent of gross domestic product (GDP) for 2016-17.
With economic activity not picking up at the desired pace and tax revenue staying sluggish, the government had last year redrawn the fiscal consolidation road map by stretching the time to reach the fiscal deficit figure of 3 per cent of GDP from two years to three years.

There is little doubt about government meeting current year fiscal deficit target of 3.9 per cent, but achieving 3.5 per cent in 2016-17 and 3 per cent for 2017-18 is widely seen as uncertain.
The Saturday meeting may be aimed at sensitising economists about some of the macro-economic indicators as well as fiscal health of the government, besides seeking some inputs on expenditure cuts and fiscal manoeuvring.
Jaitley had met economists as part of pre-Budget meetings in January. During that round, he had also met industry captains, bankers, farmers and trade union representatives.
The meeting with economists will come a day after the Economic Survey for 2015-16, which presents the state of economy, is presented in Parliament on Friday.

India clocked a growth rate of 7.6 per cent in 2015-16,
the highest achieved by any major economy in the world.
Later, in an interview to Doordarshan, the finance minister said decision-making has been quickened and confidence of investors has increased in the Indian economy since the NDA government came to power.
He is optimistic that India is likely to register a growth rate of 7.6 per cent during the current financial year despite global challenges.
Highlighting other achievements of the NDA government, Jaitley referred to India becoming an attractive destination of foreign direct investment.
Fielding questions on the Vijay Mallya issue, the minister said it has adversely impacted image of the private corporate sector and stressed that the law will take its own course.

"Vijay Mallya episode has spoiled the image of private sector in the country," he said in response to a query on the beleaguered businessman who has left India and whose group companies owe over Rs 9,000 crore to banks.
Mallya, who is being investigated by several agencies, is currently in the United Kingdom.
Jaitley further said the government has taken several steps to deal with the black money menace and the recent amendment to the India-Mauritius double taxation avoidance agreement was another step in that direction.
The government, he said, has passed laws to deal with domestic black money as well as unaccounted wealth stashed abroad and it would become difficult for anyone to hide true income.

He also recalled the initiatives taken by the government in the last two years to streamline taxation system and improve ease of doing business.