Govt not trying to take Rs 3.6 lakh crore from RBI: DEA Secretary

The government said it is only in discussion for fixing appropriate economic capital framework of the central bank and not seeking Rs 3.6 lakh crore capital from the Reserve Bank of India.

Economic Affairs Secretary Subhash Chandra Garg tweeted, “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.”

Mr Subhash said the only proposal “under discussion is to fix appropriate economic capital framework of RBI.”

He said it will stick to the fiscal deficit target of 3.3 per cent for the current financial year ending March 31, 2019, he said while expressing confidence about government’s fiscal math.

He further added that “Government’s FD (fiscal deficit) in FY 2013-14 was 5.1 per cent. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3 per cent. Government has actually foregone 70,000 crore of budgeted market borrowing this year.”