What Arvind Subramanian's economic survey didn't talk about

Abstract

Discussion on serious economic challenges currently faced by India is either absent or trivialised in this year's Economic Survey. The Economic Survey is an important document, generally released a day before the Union Budget is announced. The survey documents the official view of major economic developments that have occurred during the year and thereby provides a preview of the government’s thinking on various economic issues. It is therefore an important policy document for academicians, researchers, analysts and policy makers across the country.

The most recent Economic Survey, however, appears to be more of a collection of research articles, with focus on a few subjects and hypotheses that stray far away from economic reality in India. It is not a survey of last year’s economic events. Illustratively, the survey examines the twin balance problem of the commercial banks and their relationship with the corporate world, with both under stress. The suggested solutions in the survey include creating a public sector asset rehabilitating agency (PARA). This has been adopted some countries but not always successfully, and it comes at a price which finally is borne by taxpayers. Another source could be funding from the capital market. Finally, as in the previous year, the Economic Survey suggests that RBI could transfer some of it reserves to ailing commercial banks and PARA. Read more at: https://thewire.in/economy/arvind-subramanian-economic-survey-2016-17