Press Esc to close
Monday 27 March 2017
News updated at 12:17 AM IST

Budget paves way for lowering twin deficits, says RBI

Mumbai, Feb 28 (PTI)
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
MDMK chief Vaiko interacts with Tamilnadu farmers during a protest at Jantar Mantar in New Delhi...

MDMK chief Vaiko interacts with Tamilnadu farmers during a protest at Jantar Mantar in New Delhi...

Administrative officers and people together take the oath for National Mission...

Administrative officers and people together take the oath for National Mission...

Bollywood actor Alia Bhatt visits a dance academy in Mumbai on Saturday...

Bollywood actor Alia Bhatt visits a dance academy in Mumbai on Saturday...

Folk artists perform at a cultural event in Chikmagalur on Saturday...

Folk artists perform at a cultural event in Chikmagalur on Saturday...

The three woman Rotarians Meenakshi Aravinth, Mookambika Rathinam and Priya Rajpal...

The three woman Rotarians Meenakshi Aravinth, Mookambika Rathinam and Priya Rajpal...

Spirited Indian cricket fans waving the tricolour during the second day of last Test match...

Spirited Indian cricket fans waving the tricolour during the second day of last Test match...

Industrialist S K Birla honours Infosys Foundation chairperson Sudha Narayana Murthy...

Industrialist S K Birla honours Infosys Foundation chairperson Sudha Narayana Murthy...

Austria's Stefan Kraft, the overall winner, kisses the trophy at the World Cup Ski Jumping final...

Austria's Stefan Kraft, the overall winner, kisses the trophy at the World Cup Ski Jumping final...

Prime Minister Narendra Modi addresses an event organised at the residence of Union I & B Minister..

Prime Minister Narendra Modi addresses an event organised at the residence of Union I & B Minister..

People look at floral tributes in Parliament Square, London, Sunday, March 26, 2017, laid out...

People look at floral tributes in Parliament Square, London, Sunday, March 26, 2017, laid out...

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