No major problem with central govt finances: RBI Governor

Mumbai: Governor Shaktikanta Das on Friday said the RBI does not see “any major problem” or any other worries with the central government finances.

The government has promised to stick to the fiscal deficit targets laid down in the budget as part of the consolidation roadmap, Das told reporters at the RBI headquarters at the customary post-policy press conference.

Replying to a specific question on the state of government finances, Das said, “So far as central government finances are concerned, I do not see any major problem or anything that you know that worries the central bank”.

He said the government is, by and large, sticking to the fiscal consolidation roadmap after the end of the pandemic, which had seen some expansion because of the high spending.

Even during the pandemic, the government’s spending was “calibrated and targeted”, Das noted.

“After the pandemic, the government has announced a fiscal consolidation roadmap. And by and large, they’re sticking to that,” he said.

The governor noted that even recently, a statement has been made by the finance ministry that the government will stick to the fiscal deficit, and they are targeting this fiscal consolidation roadmap