<p>The newly set-up Prime Minister's Economic Advisory Council (PMEAC) on Wednesday warned against deviating from the fiscal consolidation path.<br /><br />The warning comes as the government is considering a stimulus package to kick-start a stuttering economy.<br /><br />In its first-ever meeting, PMEAC Chairman Bibek Debroy said: “The fiscal consolidation exercise should not be deviated from.”<br /><br />The PMEAC is the second high-level body which has advised against a stimulus.<br /><br />Last week, RBI Governor Urijit Patel said the government should be very cautious in its fiscal actions at the moment when the combined deficit of Centre and states has reached 6%.<br /><br />Debroy said there was a consensus amongst the members of the PMEAC that the economy had slowed down but declined to comment whether demonetisation or GST were the reasons behind it.<br /><br />He outlined 10 priority areas on which the PMEAC will focus in the coming months.<br /><br />These are economic growth, fiscal framework, employment and job creation, monetary framework, public expenditure, institutions of economic governance, agriculture and animal husbandry, informal sector and its integration with formal sector.<br /><br />To a question on why the PMEAC has taken upon itself the issue related to monetary policy when there is a Monetary Policy Committee tasked with fixing the benchmark policy interest rates, Debroy said the PMEAC will look at the structural issues and not wade into the nitty-gritty of rate setting.<br /><br />The PMEAC will independently advise the prime minister on economic policies.<br /><br />Since the presentation of the Union Budget is around the corner, in the next few months, the council's focus will also be on guidance to the preparation of the Budget.<br /><br />The council will, however, be embedded in Niti Aayog and will help take its agenda forward.</p>
<p>The newly set-up Prime Minister's Economic Advisory Council (PMEAC) on Wednesday warned against deviating from the fiscal consolidation path.<br /><br />The warning comes as the government is considering a stimulus package to kick-start a stuttering economy.<br /><br />In its first-ever meeting, PMEAC Chairman Bibek Debroy said: “The fiscal consolidation exercise should not be deviated from.”<br /><br />The PMEAC is the second high-level body which has advised against a stimulus.<br /><br />Last week, RBI Governor Urijit Patel said the government should be very cautious in its fiscal actions at the moment when the combined deficit of Centre and states has reached 6%.<br /><br />Debroy said there was a consensus amongst the members of the PMEAC that the economy had slowed down but declined to comment whether demonetisation or GST were the reasons behind it.<br /><br />He outlined 10 priority areas on which the PMEAC will focus in the coming months.<br /><br />These are economic growth, fiscal framework, employment and job creation, monetary framework, public expenditure, institutions of economic governance, agriculture and animal husbandry, informal sector and its integration with formal sector.<br /><br />To a question on why the PMEAC has taken upon itself the issue related to monetary policy when there is a Monetary Policy Committee tasked with fixing the benchmark policy interest rates, Debroy said the PMEAC will look at the structural issues and not wade into the nitty-gritty of rate setting.<br /><br />The PMEAC will independently advise the prime minister on economic policies.<br /><br />Since the presentation of the Union Budget is around the corner, in the next few months, the council's focus will also be on guidance to the preparation of the Budget.<br /><br />The council will, however, be embedded in Niti Aayog and will help take its agenda forward.</p>
