24 February 2001

Economic Survey 2000-01 admits economy slowdown
New Delhi: The pre-budget Economic Survey for 2000-2001 has admitted that there are ``identifiable gaps' in the ongoing economic reform process, which have impacted the long-term growth performance of the economy. The Economic Survey, 2000-01 presented to the parliament by Mr. Yashwant Sinha, union finance minister, has acknowledged that the economy is now at ``a difficult stage and some problems of growth are likely to be faced in the coming year'.

The Survey has noted that because of irregular rainfall for the second consecutive year, agricultural growth has been low or absent in 2000-01, while industrial growth appears to have drawn-out with the sentiment for new investment not showing any improvement. The Survey says that ``measures need to be taken to instil confidence in the economy so that growth momentum of the 1990s could be recaptured'.

It said that real GDP growth rate in the current fiscal is estimated at 6 per cent against a growth rate of 6.4 per cent in 1999-2000. A tentative assessment of the balance of payments (BoP) for the current year reveals that the current account deficit might widen to about 1.5 to 1.7 per cent of GDP compared to 0.9 per cent in 1999-2000.

The survey has put forth drastic measures such as reallocation of a significant portion of central capital expenditure, through sale of all public sector units producing private goods, expenditure control by minimising wasteful expenditure and reallocating funds to public goods, infrastructure and social welfare and conversion of government departmental enterprises into companies to curtail excess manpower. It has singled out abolition of reservation for small-scale sector (SSI) and power sector reform as issues of immediate priority for action.

For full text of the Economic Survey - 2000-2001. Click here