Economic Survey roots for a market economy

The annual economic survey, tabled in the Parliament today, has emphasised the need for fiscal prudence and an increased shift from non-plan expenditure to planned spending.

It has also rooted for an end to the subsidy regime and phased shifting to a market-led economy.

The Economic Survey 2012-13, presented by the Finance Minister P Chidambaram in the Lok Sabha, has projected a rosy picture of the economy with a general improvement in the economic outlook, following various measures taken by the government to bolster investment and consumer confidence.

The Indian economy is expected to grow at a higher rate of 6.1 per cent to 6.7 per cent in the coming financial year (ie, 2013-14) as growth bottoms out at around 5 per cent in the current financial year, according to the survey.

''Controlling the expenditure on subsidies will be crucial. The domestic prices of petroleum products, particularly diesel and LPG need to be raised in line with their prices prevailing in the international market,'' the survey said.

It noted that a beginning has already been made with the decision in September 2012 to raise the price of diesel and again in January to allow oil-marketing companies to increase prices in small increments at regular intervals. The number of subsidised gas cylinders has also been capped at 9 per household.