The Economic Survey, which sets the scene for Finance Minister Arun Jaitley’s fourth annual budget, forecast that Asia’s third-largest economy should steady after a hit from the government’s shock decision in November to scrap most cash in circulation. Here are the few highlights of the report: 2017/18 GDP growth seen between 6.75 and 7.5 per cent year on year; Service sector is estimated to grow at 8.9 per cent in 2016/17; Need for fiscal prudence for both centre and states for fiscal health of the economy; Market interest rates seen lower in 2017/18 due to demonetization; Government debt to GDP ratio in 2016 seen at 68.5 per cent down from 69.1 per cent in 2015; Income tax rates and real estate stamp duties could be reduced; Universal Basic Income (UBI) proposal a powerful idea, but not ready for implementation and UBI an alternative to plethora of state subsidies for poverty alleviation.

(The Hindu)