Ahead of the NDA government’s third Union Budget, Prime Minister Narendra Modi on Tuesday met with 13 economists and experts at NITI Aayog to review the economic situation and recommend measures for the year ahead.

Although demonetisation was not on the agenda, its effect was discussed.

“There was no discussion on demonetisation separately. But its impact on various sectors and consequently on growth did come up,” said a source.

Terming the meeting an experiment, NITI Aayog Vice-Chairman Arvind Panagariya said the farm sector, jobs and skill education and other issues related to Union Budget 2017-18 were discussed.

“Today’s meeting was held at the suggestion of the Prime Minister. The economists and experts, who met the Prime Minister, were divided into three groups and later briefed him on their deliberations,” he told reporters, adding that the government received a number of suggestions.

The Prime Minister, who is Chairman of NITI Aayog, said the advancement of the Budget to early February would ensure that expenditure is authorised by the time the new financial year begins.

“In our current budget calendar, the authorisation of expenditure coincides with the onset of the monsoon,” Modi noted.

The meeting on ‘Economic Policy: The Road Ahead’ was also attended by Finance Minister Arun Jaitley and Secretary-level officials.

“Participants shared their views on various economic themes such as agriculture, skill development and job creation, taxation and tariff related matters, education, digital technology, housing, tourism, banking, governance reform, data-driven policy, and future steps for growth,” said an official release.

Sources said each participant was given four minutes to speak.

Other proposals

Panagariya said suggestions included proposals on how to make digital payments to farmers and double farm income by 2022. “Greater market support and price support mechanisms in agriculture were also discussed,” he said.

On job creation and skill development, experts recommended apprenticeship development and discussions with industry. The need to move workers from the informal to the formal sector also came up. Economists raised the issue of inverted duty structure for manufacturing, and sought harmonisation of customs tariff at 7 per cent.

Calling for a number of reforms in the budgetary process, economists sought simplification in corporate and personal income tax. They also called for strategic disinvestment, and listing of state-owned firms as well as the increased use of direct benefit transfers to rationalise subsidy expenditure.

They also recommended time-cycle smoothening of revenues as is being for expenditure.

Economists and experts including India Equity Strategist for Credit Suisse Neelkanth Mishra, former director of NIPFP M Govinda Rao, Professor of Economics, John Hopkins Pravin Krishna, Chairman Oxus Investments Surjit Bhalla, former Finance Secretary Sumit Bose and CEO Pratham Education Foundation Madhav Chavan attended the meeting.

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