There’s no proposal from the federal government to invite Reserve Financial institution of India to switch its surplus reserves, mentioned Subhash Chandra Garg, financial affairs secretary within the finance ministry, on Friday amid Opposition price that the Centre had demanded Rs 1 lakh crore from the financial institution.
“Lot of misinformed hypothesis goes round in media. Executive’s fiscal math is totally on the right track. There’s no proposal to invite RBI to switch 3.6 lakh crore or 1 lakh crore, as speculated,” he tweeted.
Garg added that the one proposal in regards to the reserves that the federal government was once discussing was once to mend the fitting financial capital framework of the RBI. That framework is used to make a decision the ok quantity of reserves the central financial institution will have to handle.
The tweets come an afternoon after senior Congress chief and previous finance minister P Chidambaram accused the Narendra Modi govt of looking to “seize” the RBI to tide over its fiscal disaster, caution that the sort of transfer can be “catastrophic”.
“The federal government stares at a fiscal deficit disaster… The federal government desires to step up the expenditure in an election yr. Discovering all avenues closed, in desperation, the federal government has demanded Rs 1 lakh crore from the reserves of RBI,” the previous finance minister mentioned at a press convention in Kolkata on Thursday.
Brushing aside communicate of fiscal deficit disaster, Garg mentioned, “Executive’s FD in FY 2013-14 was once 5.1%. From 2014-15 onwards, Executive has succeeded in bringing it down considerably. We will be able to finish the FY 2018-19 with FD of three.3%. Executive has in fact foregone 70000 crore of budgeted marketplace borrowing this yr,” he tweeted.
The federal government and the RBI had been clashing on a number of problems together with the reserves query, and a central authority proposal to ease the capital and lending curbs for state-run banks. The rift has widened sharply up to now few weeks and will likely be taken up on the RBI’s impending board assembly on November 19.
(With Reuters inputs)
First Printed: Nov 09, 2018 14:30 IST