$5 trillion economy is not an extraordinary goal | The Indian Express

$5 trillion economy is not an extraordinary goal | The Indian Express

Written by P Chidambaram |Updated: July 21, 2019 8:13:34 am

P Chidambaram is former Finance minister of India.

$5 trillion economy is not an extraordinary goal

The CEA has good reason to be worried about the insufficiency of domestic resources. Government/ public investment can be made only out of tax revenues and public sector surpluses. Of these, tax revenues are under pressure. 2018-19 was a particularly dismal year; yet the government has set aggressive targets for tax revenues in 2019-20. Evidently, the CEA does not share the government’s optimism.

The CEA has good reason to be worried about the insufficiency of domestic resources. Government/public investment can be made only out of tax revenues and public sector surpluses. Of these, tax revenues are under pressure. (File)

While speaking on Budget 2019-20 in the Rajya Sabha, I said, “If the nominal growth rate of GDP is 12 per cent, the size of the GDP will double every six years. If the nominal growth rate is 11 per cent, it will double every seven years.” I urged the Finance Minister to not stop with the goal of a USD 5 trillion economy in 2024-25 but also point out that the size of economy will become USD 10 trillion six or seven years thereafter and it will become USD 20 trillion six or seven years thereafter.