The agency said that the vigour of economic recovery is surprising and also noted the increase in household savings
Financial savings of the household sector in form of cash soared to 7-year high of 2.8 percent of gross national disposable income (GNDI) in 2017-18, the year following demonetisation, showed a RBI data
Despite an overall decline in the savings rate, the household savings rate for public sector increased marginally to 1.6 percent in FY17 from 1.5 percent in FY12 and for corporations, it fared better at 12.1 percent from 9.5 percent.
Household savings coming into bank deposits, life insurance funds and shares increased manifold: Economic Survey
Economic Survey says mutual funds witnessed an inflow of over Rs 2.53 lakh crore savings in April-October period of current fiscal
Savings in deposits by the households rose, however, to Rs 1 lakh crore (17 per cent) in the year to Rs 6.91 lakh crore in FY14 as against Rs 5.91 lakh crore in 2012-13.
Detection of Rs 100 denomination fake notes increased by 10,000 pieces during the fiscal to 1.18 lakh pieces, the RBI said in its recently released annual report.<br />
Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income-Tax Act.
Given the absolute lack of safety nets, government should not be taxing ordinary households and small proprietorships at all.
Households need to be incentivised for enhancing financial savings, Chief Economic Advisor Raghuram G Rajan said today.