MUMBAI Sept 20: Reserve Bank Governor Shaktikanta
Das Friday exuded confidence that second-quarter GDP numbers
will be better than the previous one as the government has
started spending again.
Attributing the 5 percent GDP growth in Q1, which is a
six-year low and is even lower than that of Pakistans 5.4
percent, to very low government spending, Das said with the
centre opening its coffers again growth should pick up going
forward.
The governor also welcomed the government announcement
in the morning to slash corporate tax across the board and
termed the same as bold moves which should benefit all
sectors.
In a major fiscal booster, the government slashed
effective corporate tax to 25.17 per cent inclusive of all
cess and surcharges for domestic companies.
Finance Minister Nirmala Sitharaman on Friday said the
revenue foregone on reduction in corporate tax and other
relief measures will be Rs 1.45 lakh crore annually.
This, she said is being done to promote investment
and growth.
Das also reiterated the possibility of more rate cuts
if incoming data support such a move but warned against
government initiating any fiscal expansion, saying it has no
legroom to do so given the high deficit numbers.
He also called for urgent structural reforms
especially inland and labour as well as entrepreneurial areas.
(PTI)
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