<p>RBI Governor Shaktikanta Das on Thursday said the central bank has no plans to monetise the rising fiscal deficit.</p>.<p>This is the third consecutive year that the government has revised its fiscal deficit target.</p>.<p>The budget has pegged fiscal deficit at 3.8 per cent for the current fiscal year, up from 3.3 per cent projected in the previous budget; and at 3.5 per cent for FY21, up from 3 per cent estimated in the July 2019.</p>.<p>The government has already crossed the fiscal deficit at 132 per cent of the estimate as of December end.</p>.<p>The government has utilised 'escape clause' under the Fiscal Responsibility and Budget Management (FRBM) Act which provides it a 50 bps leeway for relaxation of fiscal deficit roadmap during time of stress.</p>.<p>Accordingly, it has budgeted a net borrowing Rs 5.45 lakh crore from the market in FY21.</p>.<p>"There is no plan to monetise the government's fiscal deficit," Das told reporters during the post-policy conference.</p>
<p>RBI Governor Shaktikanta Das on Thursday said the central bank has no plans to monetise the rising fiscal deficit.</p>.<p>This is the third consecutive year that the government has revised its fiscal deficit target.</p>.<p>The budget has pegged fiscal deficit at 3.8 per cent for the current fiscal year, up from 3.3 per cent projected in the previous budget; and at 3.5 per cent for FY21, up from 3 per cent estimated in the July 2019.</p>.<p>The government has already crossed the fiscal deficit at 132 per cent of the estimate as of December end.</p>.<p>The government has utilised 'escape clause' under the Fiscal Responsibility and Budget Management (FRBM) Act which provides it a 50 bps leeway for relaxation of fiscal deficit roadmap during time of stress.</p>.<p>Accordingly, it has budgeted a net borrowing Rs 5.45 lakh crore from the market in FY21.</p>.<p>"There is no plan to monetise the government's fiscal deficit," Das told reporters during the post-policy conference.</p>