Economic Survey paints gloomy picture

Contrary to the projection of seven per cent Gross Domestic Product (GDP) growth, the Economic Survey released by the Finance Ministry a day ahead of the budget for fiscal year 2009-10 puts forth a grim reality.
The GDP at the base price is expected to expanded by only 4.7 per cent -- far below than the encouraging figures during last fiscal that was at 5.3 per cent. Favourable monsoon and judicious policies had soared the growth rates in both agriculture and non- agriculture sectors in the last fiscla year but delayed monsoon coupled with acute power crisis, frequent political disruptions have taken a huge toll on the agriculture that accounted for only 2.1 per cent growth, states the Survey. The agriculture contributes 32.4 per cent to the total GDP.
The survey -- based on eight months' data of the current fiscal year -- portrays a gloomy economic picture. The manufacturing industry posted a negative growth of 0.5 per cent against 0.2 per cent last year. Ditto for electricity, gas and water. This time around, education, health and construction, in non-agro sector, have powered the growth. While, financial intermediary has nosedived to 3.3 per cent from last year's high of 13.8 per cent. The Survey maintained that double digit price hike and slower growth have had an adverse effect on the consumers' purchasing power, posing a serious threat to the financial management.
The government's spending on the corporation has also gone up by 17.5 per cent in 2007-08 in comparison to 2006-07, states the survey, which was tabled in the House late this evening by finance minister Surendra Pandey, who will present the budget for the fiscal year 2009-10 on Monday.