EAC-PM rejects fiscal stimulus, bats for fiscal consolidation

Identifies 10 priority areas to boost economic growth

by Natasha Nadkar

The Prime Minister’s Economic Advisory Council (EAC-PM) has rejected the idea of mid-year fiscal stimulus to spur a revival in economic growth, as per a report in Livemint. The EAC-PM chairman Bibek Debroy stated that the government should not deviate from the fiscal consolidation roadmap. The council has identified 10 priority areas to boost economic growth and employment over the next six months, with greater last-mile connectivity. The recommendations of the council would be structured around these themes. The report will be prepared after consulting ministries, states, experts, institutions, the private sector and other key stakeholders.

10 priority areas identified by EAC-PM
Sr.no Focus areas
1. Economic growth
2. Employment and job creation
3. Informal sector and integration
4. Fiscal framework
5. Monetary policy
6. Public expenditure
7. Institutions and economic governance
8. Agriculture and animal husbandry
9. Patterns of consumption and production
10. Social sector

References
1. http://pib.nic.in/newsite/erelcontent.aspx?relid=171593
2. http://www.livemint.com/Politics/PLArDg3VH4DrWkcA1Vv2VK/PMEAC-rejects-fiscal-stimulus-prioritizes-job-creation.html
CMIE STATISTICS
Unemployment Rate
Per cent
4.8 +0.1
Consumer Sentiments Index
Base September-December 2015
92.2 -0.4
Consumer Expectations Index
Base September-December 2015
90.5 -0.3
Current Economic Conditions Index
Base September-December 2015
95.0 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Dec 16 Mar 17 Jun 17 Sep 17
New projects 2.32 3.77 2.02 0.88
Completed projects 1.00 1.91 1.13 0.70
Stalled projects 1.13 0.70 2.66 0.64
Revived projects 0.18 0.67 0.29 0.14
Implementation stalled projects 0.82 0.33 0.67 0.50
Updated on: 19 Oct 2017 4:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.2 10.2
 Expenses 1.9 6.3 11.9 10.5
 Net profit 14.6 40.3 16.8 -18.9
 PAT margin (%) 6.9 6.1 6.1 5.4
 Count of Cos. 4,503 4,503 4,427 4,257
Non-financial Companies
 Income 0.6 5.9 11.8 10.9
 Expenses -0.2 7.2 15.5 11.1
 Net profit 26.7 24.6 -1.1 -24.3
 PAT margin (%) 6.9 6.2 6.3 5.3
 Net fixed assets -9.2 7.5
 Current assets 8.1 2.1
 Current liabilities 11.7 8.5
 Borrowings 3.1 4.9
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,476 3,482 3,432 3,324
Numbers are net of P&E
Updated on: 19 Oct 2017 4:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 5.0 1.0
 Expenses 12.8 9.9 5.1 1.2
 Net profit 1.0 -2.2 1.1 -15.2
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.4 8.8
 Net worth 9.6 9.6 8.8 7.7
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,932 23,621 23,131 19,375
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.3 9.3 4.3 -0.6
 Net profit -8.4 -2.4 -6.3 6.5
 PAT margin (%) 2.4 2.2 2.1 2.7
 Net fixed assets 12.9 11.6 13.1 13.9
 Net worth 7.9 8.2 7.3 7.0
 RONW (%) 5.5 5.1 4.9 5.6
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 20,312 18,893 18,620 15,945
Numbers are net of P&E
Updated on: 21 Sep 2017 10:15AM

Time-series available since 2007-08