Chief Economic Advisor Arvind Subramanian said if all states start offering loan waivers then the total burden could swell to 2.7 lakh crore rupees and cause deflationary shock to the economy. <br/><br/>Addressing a press conference on Economic Survey 2016-17- Volume -2 in New Delhi today, Dr Subramanian said, farm loans waiver will have a deflationary, not inflationary effect, if states' borrowing limit is not raised. <br/><br/>He said, de-acceleration of economic growth is over and the economy is nearly back to the same growth rate. He said, the long term effect of demonetization is that there has been a 20 per cent reduction in cash in economy. <br/><br/>Dr Subramanian said, 5.4 lakh new tax payers have been added in post-demonetization period. He said, there is a rekindled optimistic on structural reforms in the country's economy due to launch of GST. He said, with 13.5 lakh new registrants to GST Network, implementation of GST is better than expected and it is very encouraging sign. <br/><br/>He said, export growth has turned positive after a gap of two years and imports contracted marginally, so that trade deficit narrowed to 5.0 per cent of GDP in 2016-17 as compared to 6.2 per cent in the previous year. The current account deficit narrowed in to 0.7 percent of GDP, down from 1.1 percent of GDP.