The Finance Minister further said that CPI inflation which was 9.4% during the last three years of the previous Government had come down to 5.4%.  This was accomplished despite monsoon shortfall of 13% for two consecutive years.

Calling India's external situation as robust, Shri Jaitley said that the Current Account Deficit had declined from 18.4 billion US dollars in the first half of last year to 14.4 billion this year, projected to be 1.4% of GDP by the end of this year.  India's foreign exchange reserves are at the highest level of about 350 billion of US dollars.

The Finance Minister affirmed the principle that money with Government belongs to the people and the Government has the sacred responsibility to spend it prudently and wisely for the welfare of people, especially for the poor and the downtrodden.  He said that the Plan expenditure at RE stage has been increased in 2015-16 in contrast to the usual practice of reducing it.

Jaitley pointed-out three serious implications facing the Indian economy. "Firstly, we must strengthen our firewalls against the risks of further global slowdown and turbulence by ensuring macroeconomic stability and prudent fiscal management.  Secondly, since foreign markets are weak, we must rely on domestic demand and Indian markets to ensure that India's growth does not slow down.  And thirdly, we must continue with the pace of economic reforms and policy initiatives to change the lives of people for the better," he said.

The Union Finance Minister Jaitley set the agenda for the Financial Year 2016-17 as ‘Transform India'.
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