Press Esc to close

Budget paves way for lowering twin deficits, says RBI

Mumbai, Feb 28 (PTI) 17:55 IST
The Reserve Bank today welcomed the General Budget, saying it has laid the foundation for lowering fiscal and current account deficits, apart from supporting both domestic and foreign investments.

The central bank said the government's net market borrowing target of around Rs 5 lakh crore (budget estimate for the next fiscal is Rs 4.84 lakh crore) is manageable.

RBI Deputy Governor Urjit Patel at the customary post-budget press conference here said, "The Budget will go a long way in lowering the fiscal risks.

"The fiscal targets achieved in 2012-13 (5.2 per cent of GDP) and that laid down for 2013-14 (projected at 4.8 per cent) will lay the foundation for a sustainable rebalancing of government finances. This would impart confidence in the economy and support investments, both domestic and foreign."

Asked about monetary response to the Budget proposals in general and the fiscal consolidation roadmap in particular, Patel said the RBI response will be known on March 19. "As you know, the mid-term monetary policy review is next month. So, we will reflect on that and discuss it next month."

The Budget estimated fiscal deficit for the current financial year at 5.2 per cent, and at 4.8 per cent in FY14.

Patel said along with lowering of twin deficits (FD and CAD), the Budget will boost household savings along with creating a space to augment private investment.

"The Budget sets the stage for lowering the twin deficits, moderating the drafts of government on household financial savings and help create the fiscal space to augment private investment," the RBI Deputy Governor maintained.

On the concerns regarding higher subsidies, Patel, who took over the job last month, said the Budget has taken significant steps to bring down fiscal deficit and challenges arising from subsidies are being met by the Government.

"The Budget has taken significant steps forward for taking the overall fiscal deficit down and the challenge of subsidies is being met....this is a medium-term programme and we have both 2012-13 and 2013-14 numbers, which indicate the Government expenditure and borrowings are being brought down and I think, overall that's a good thing."

Go to Top

Photo Gallery
CPI(M) workers chant slogans at a protest rally outside BJP headquarters in New Delhi on Tuesday...

CPI(M) workers chant slogans at a protest rally outside BJP headquarters in New Delhi on Tuesday...

Woman teachers pose with Diwali greeting messages at a school in Moradabad on Tuesday...

Woman teachers pose with Diwali greeting messages at a school in Moradabad on Tuesday...

A girl buying decorative items in a market on the occasion of Dhanteras festival in Bhopal on ...

A girl buying decorative items in a market on the occasion of Dhanteras festival in Bhopal on ...

Vendors show lanterns to customers at a roadside market ahead of the Hindu festival of Diwali in ...

Vendors show lanterns to customers at a roadside market ahead of the Hindu festival of Diwali in ...

BJP National President Amit Shah and BJP Kerala state president Kummanam Rajasekharan wave to the ..

BJP National President Amit Shah and BJP Kerala state president Kummanam Rajasekharan wave to the ..

England Midfielder Callum Hudson-Odoi(14) and Hinata Kida(6),Midfielder of Japan vie for the ball ..

England Midfielder Callum Hudson-Odoi(14) and Hinata Kida(6),Midfielder of Japan vie for the ball ..

Actress and BJP MP Hema Malini along with her daughters Ahana and Esha cutting a cake to celebrate..

Actress and BJP MP Hema Malini along with her daughters Ahana and Esha cutting a cake to celebrate..

Union Minister for Defence, Nirmala Sitharaman with Chief of Naval Staff, Admiral Sunil Lanba and ..

Union Minister for Defence, Nirmala Sitharaman with Chief of Naval Staff, Admiral Sunil Lanba and ..

Kamaraj Congress (KKC) and Most Backward Communities Federation demonstrators lying on the road in..

Kamaraj Congress (KKC) and Most Backward Communities Federation demonstrators lying on the road in..

Rajesh Talwar arrives at his residence in Noida on Monday after he, along with his wife Nupur, was..

Rajesh Talwar arrives at his residence in Noida on Monday after he, along with his wife Nupur, was..

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.