There is no drift in the government or slackening of reforms, says economic affairs secretary Shaktikanta Das . Reeling out measures taken by the government, Das tells ET’s Deepshikha Sikarwar in an exclusive interview that the economy is looking up and the target is to lift growth to 8% and higher thereafter. Edited excerpts:Domestic sentiment had been weak for a while, but it is turning positive now. There are very definite signs of improvement. Take, for example, the indirect tax collections. Even if you take out the impact of additional resource mobilisation measures — the impact of the excise on fuel and additional service tax – the revenue growth is about 12%.This is reflective of revival in the manufacturing sector and other sectors. The target of the government is to move to 8% growth first and then exceed 8%. We initially thought it would be possible this year, but after the presentation of the budget there was again a monsoon failure that obviously impacted the agriculture sector.It also impacted rural purchasing, which is a major source of consumption demand. So, overall, challenges remain, but the economy has held its head above water in an otherwise very turbulent ocean. Many of the measures we have taken…I would expect the results in the coming quarters.Where is the drift? Let’s take a look at the last two months only — November and December. The government took big decisions like financial restructuring of the electricity distribution companies (discoms).Again, in November the government came out with a huge reform in FDI (foreign direct investment) policy. ECB (external commercial borrowings) liberalisation policy came towards the end of the month. The gold schemes were launched in November. Mumbai-Ahmedabad high-speed rail is a very big decision. It is the biggest infrastructure project in the country in the last 60-70 years.The actual implementation will start maybe two years down the road, but when it starts, imagine the kind of multiplier effect it will produce on the economy in terms of construction, in terms of giving a boost to the local economy, the services sector. Alstom and GE will be investing in setting up railway engine manufacturing units in Bihar at a combined investment of over Rs 40,000 crore.Bankruptcy bill was introduced in December. Next to GST , bankruptcy bill is the biggest reform that will re-energise the credit sector. In India starting a business is like a chakravyuh — like Abhimanyu, you can enter it but cannot come out of it. Bankruptcy code is the first step which will provide an exit route.So, if you take stock of the decisions over the last one and a half years, you will find that almost every fortnight on average a major decision is being taken. There is no decision that should have been taken but is held up. It is incorrect to say there is any kind of policy drift. I don’t know where this is coming from.The banking sector’s stressed assets is a challenge and it’s a work in progress. The department of financial services is considering various options and you will see a lot of decisions as well as action on that front from the government.The focus will remain to revive growth for jobs creation. Obviously the rural and agricultural sector is very important. So far as the manufacturing sector is concerned, already a number of measures have been announced and it is a work in progress, like ease of doing business and bankruptcy code, simplification of corporate tax regime, problem of inverted duty have been addressed in excise duty. Agriculture sector is very important because the rural purchasing power comes from there. The thrust of economic policy is to pass the GST, pass the bankruptcy law.The mid-year economic review suggested a relaxation in the fiscal consolidation roadmap to create room to continue public spending, especially in view of the implications of the implementation of the Seventh Pay Commission proposals.With regard to fiscal deficit , it will be spelt out in the Budget. But let me clarify the government is committed to the medium-term path of fiscal consolidation, which was spelt out by the finance minister in the last Budget. We have to remember that mid-year analysis is an economist’s analysis of the situation, but the decisions of the government have to be taken in the context of the political economy also and there are other factors which come into decision-making.It should not be read as a decision to loosen the fiscal deficit. The mid-year review talked about stretching inflation goals to create space for rate cuts. What are your views? That is an economist’s perspective. The RBI will take a final call.GST is part of the parliamentary process, so we have to see how it works out in the next session. So far as bankruptcy law is concerned, it has been referred to a joint select committee. The committee is mandated to give its report in three months. Then the effort of the government will be to get it passed in the budget session.DBT (direct benefit transfer) will result in savings. The pilot on DBT in kerosene has been announced. Various possibilities are under consideration for food and fertiliser. There is a need for subsidy reform (but) at the same time you have to take into account the state of rural economy and of farming community.The government will continue with expenditure, especially in infrastructure sector. We have to also remember that public sector driven capital expenditure happens on two accounts. One, which flows directly from the Budget, and the other is what government facilitates separately.The NIIF (National Investment and Infrastructure Fund) is one vehicle the government has created which has now become operational. So I would expect a lot of action under NIIF in terms of investments actually happening in the infrastructure sector. On NIIF, there is a lot interest from sovereign wealth funds and pension funds from countries like Russia, UAE, UK and Singapore. By end of January our target is to tie up at least two major investments.On the PPP policy the Kelkar committee report has come. We have already examined it. The government will take a decision soon.The MPC will be considered by the Cabinet. The proposal is ready. The PDMA is under inter-ministerial consultation.Corporate bonds should also benefit from the bankruptcy law because unsecured creditors will get precedence over government dues. Unsecured financial creditors will basically mean bonds floated by companies. That will give a boost to the corporate bond market. As to other measures there have been a number of committees. A lot of suggestions have come that are being examined.The shortfall on the tax side, if any, I would expect to be marginal. In the indirect taxes we will exceed the target and they will partly compensate the shortfall in direct tax side, if any. After that there could be a marginal shortfall. On the disinvestment side we are trying to maximise the numbers. So today it is about Rs 12,000 crore. A reasonably decent amount will come under disinvestment.In non-tax revenues we have done far better than what was projected in the budget. That will also compensate for the shortfall. For the rest we are trying to see what can be done. But let me clarify, the intention is not to cut any capital expenditure or plan expenditure.