Govt not seeking Rs 3.6L cr from RBI: SC Garg

NEW DELHI: The government on Friday mentioned it's not searching for Rs three.6 lakh crore capital + from the Reserve Bank but is simplest in dialogue for fixing appropriate financial capital framework of the central bank.

"Lot of misinformed speculation is going around in media. Government's fiscal math is completely on track. There is no proposal to ask RBI to transfer Rs 3.6 or 1 lakh crore, as speculated," financial affairs secretary Subhash Chandra Garg tweeted.

He mentioned the only proposal "under discussion is to fix appropriate economic capital framework of RBI."

Exuding confidence about government's fiscal math, he mentioned, it's going to keep on with the fiscal deficit goal of three.three consistent with cent for the current financial yr ending March 31, 2019.

"Government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. Government has actually foregone 70,000 crore of budgeted market borrowing this year," he mentioned.

The RBI and the federal government have not been at the identical page on different problems for some months now. The disagreements came out in open when RBI deputy governor Viral Acharya, in a hard-hitting speech, mentioned failure to defend the central bank's independence would "incur the wrath of the financial markets".

Govt force on RBI might be catastrophic: Chidambaram

It later emerged that the federal government had invoked a never-before-used provision of the legislation -- Section 7 of the RBI Act -- to ease NPA norms so that banks can kickstart lending and strengthen enlargement, and switch extra dividend to spice up liquidity -- problems which the central bank thinks can't be relented.

The rift has widened sharply previously few weeks and will likely be taken up at the RBI's drawing close board assembly on November 19.

Senior Congress leader and previous finance minister P Chidambaram on Thursday had accused the federal government of seeking to capture the RBI to tide over its fiscal disaster, warning that this kind of transfer would be catastrophic.

Modi executive seeking to capture RBI: Chidambaram

Senior Congress leader P Chidambaram on Thursday accused the Narendra Modi government of seeking to "capture" the Reserve Bank of India to tide over its fiscal disaster, warning that this kind of transfer would be "catastrophic".

"The government stares at a fiscal-deficit crisis. The government wants to step up the expenditure in an election year. Finding all avenues closed, in desperation, the government has demanded Rs 1 lakh crore from the reserves of RBI," Chidambaram had mentioned.

The former finance minister alleged that the federal government had packed the central bank's board with handpicked nominees and was once making each try to push through its proposals at the next RBI board assembly.
Govt not seeking Rs 3.6L cr from RBI: SC Garg Govt not seeking Rs 3.6L cr from RBI: SC Garg Reviewed by Kailash on November 10, 2018 Rating: 5
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