Amid the speculation of the government announcing stimulus measures to boost growth, the newly constituted Economic Advisory Council to the Prime Minister (EAC-PM) in its first meeting wants the government to stick to its fiscal consolidation road map and has suggested that stimulus to the industry should not be at the cost of fiscal prudence. The EAC-PM which is headed by Bibek Debroy said that " There is a consensus (among the members)... That the fiscal consolidation exercise should not be deviated." The government has pegged the fiscal deficit target at 3.2 per cent for the current fiscal and 3 per cent for the next financial year.
The council identified ten themes, around which its report would be structured, the themes identified are economic growth, employment and job creation, informal sector and integration, fiscal framework, monetary policy, public expenditure, institutions of economic governance, agriculture and animal husbandry, patterns of consumption and production and social sector.
The council also recommended the need for effective tracking of key economic parameters through possible mechanisms for instituting an economy track monitor for action based on informed assessment and analysis. Debroy further said that there is a consensus among us about the various reasons that have contributed to the slowdown in the growth rate and the Council will provide specific recommendations that can be implemented in near term.