Mumbai: Reserve Bank of India governor Shaktikanta Das exuded confidence Friday that the second-quarter GDP numbers will be better than the previous one as the government has started spending again.
Attributing the five per cent GDP growth in Q1, which is a six-year low and is even lower than that of Pakistan’s 5.4 percent, to very low government spending, Shaktikanta Das said with the centre opening its coffers again growth should pick up going forward.
Shaktikanta Das also welcomed the government’s announcement Friday morning to slash corporate tax across the board and termed the same as bold moves which should benefit all sectors.
Das also reiterated the possibility of more rate cuts if incoming data support such a move but warned against government initiating any fiscal expansion. He said RBI has no legroom to do so given the high deficit numbers.
“These are definitely bold and welcome measures. It will augur extremely well and will be highly positive for our economy,” Das said at an event here.
“One of the major drawbacks that we had was high corporate tax rates and today’s drastic cut in the same will take the country closer to the rates that prevail in emerging economies such as Thailand, and the Philippines,” added the RBI governor.
PTI