Centre should use RBI reserve for long-run goals: Meghnad Desai

Mumbai: The Central government of India should ensure transparency while using the money of RBI for long-term goals, noted British economist and Labor politician Meghnad Desai said on Thursday here.

“The government should not use the RBI money to balance its budget,” he added, saying “if the government takes the money to recapitalise public sector banks, it is fine. The government has to ensure that the use of RBI money for the long-run strategic purpose and for the short-term financing,” he said.

He said that the country needs general economic development and every community cannot be satisfied by the means of concessions.

On the issue of farm loan waiver, he said, “Lobbies which can march to the Parliament suddenly have much more power.”

“You need not to romanticise farmers as they are businessmen. If I can pay my mortgage, I can’t go to the government and say waive my loan,” he said.

[source_without_link]ANI[/source_without_link]