1. India’s economy will spring back to normal sooner than expected and may even make a sharp V-shaped recovery in the next financial year, two top finance ministry officials said, dismissing forecasts of a sharp contraction in GDP in the current fiscal. Monetising of the fiscal deficit by the RBI was not currently on the table, one of them said.
3. “All these things are actually giving an encouraging signal that the economy is coming back to the rate sooner than what was being anticipated,” Pandey said at an event of the Federation of Indian Chambers of Commerce & Industry (Ficci) on Thursday by video conference.
“June and July have been more promising than we initially thought… If we continue in this manner, and we are not saddled with any more surprises, it may not be as bad as the outside world thinks or we were thinking,” Bajaj said. “Unless COVID hits us very badly and we have to change our strategy in the middle, which seems very unlikely now, I am expecting a V-shaped recovery.”
“At this point of time, monetisation is not on the table at all. It has not been discussed with the central bank also,” Bajaj said. “The revenues are going up and we also mobilised some extra revenues through excise duty. So that is something that is going to help us this year.”
c) Goods and services tax (GST) collections of Rs 91,000 crore in May were at about 70% of the year earlier.