NEW DELHI: Expecting Indian economy’s real rate of growth at 7 to 7.5% in 2022-23, the Economic Advisory Council to the Prime Minister (EAC-PM) on Thursday said that the growth orientation of last year’s Budget should also be maintained this year.
However, it warned against projecting unrealistically high tax revenue in the upcoming budget. The council, which met on Thursday, was optimistic about real and nominal growth prospects in 2022-23.
“Other than an element of the base effect, the contact intensive sectors and construction should recover in 2022-23. Once capacity utilisation improves, private investments should also recover. Therefore, members felt a real rate of growth of 7 to 7.5% in 2022-23 was likely,” the council said in a statement.
“However,” the council cautioned, “this should not mean the Union Budget for 2022-23 should project unrealistically high tax revenue or tax buoyancy numbers”.