Home | China | World | Business Economic Survey Calls for Deepened Reforms, Fiscal Balance WED, FEB 27, 2002     The annual Economic Survey for 2001-02, released in New Delhi on Tuesday, asked the government to further deepen the economic reform process for a higher growth, saying that crucial issue of fiscal imbalance need to be addressed urgently to save the economy from the deleterious impact of high deficit. "The deleterious impact of such a high deficit (of central government) on the economy has been made worse by similar levels of deficit being recorded by State Governments," the report warned. Despite efforts made to curtail expenditure and increase revenues, it had proved difficult to reduce fiscal deficit below five percent of gross domestic product (GDP), admitted the survey,tabled before the on-going session of the Parliament. The report said key problem faced by the economy was reinvigoration of economic growth in current decade for which the reform process would have to be further deepened. It pointed out that the key disappointment of the reform process in 1990s was inadequate employment generation. Outlining major initiatives for reviving growth and improving the overall health of the economy, it said, subsidies continued to pose a problem in expenditure structure of the central government and that with reducing rates of poverty, justifiable food subsidy should also reduce proportionally. The times was ripe for carrying forward further financial reforms so that the real economy could benefit from modernized financial sector. Among other initiatives to improve health of the economy, the survey suggested "wholesale" modernization of tax administration. Editor:Zhong CCTV.com Recommend to your friend email:    China Central Television,All Rights Reserved