Minister of State for Finance Jayant Sinha on Friday said it is necessary to ensure that the Public Sector Banks (PSBs) should have the required capital as well as management in order to further the growth of Indian economy.
“We have to ensure that our public sector bank is also restored to good health. To be able to ensure that the public sector banks have the capital, have the management and have the governance and the capabilities they need to be able to do their work well and to power the Indian economy forward. We already said, we are going to support our Public Sector banks totally. We are going to provide all the capital resources they require as well as the management they need,” he said.
Sinha said that in order to turn around the macroeconomic situation, there is a need to focus on some important issues, which are damaging the Indian economy.
“To achieve this macroeconomic turnaround was to actually focus on consolidation, to actually focus on dealing with some of the underline issues that had been really damaging the Indian econonomy and ensure we achieve control over those so that we can turn around the overall situation,” he said while addressing the Chief Vigilance Officers of Public Sector Banks.
“We were able to restore confidence in the macroeconomic management of the Indian economy. With a decisive leadership in place, with the majority that we have in the Lok Sabha and in terms of the policy roadmap that we laid out, it became very clear to domestic investment business people and investors that we were going to very credibly and in a very thoughtful way, restore the Indian economy to the road path that it should be on,” he added.
The Minister of State for Finance also ensured that the current fiscal consolidation road map would bring fiscal deficit under control.
“The fiscal consolidation road map that we presented , the manner which we have compressed expenditure and achieved target, not through accounting tricks but through actual compression of expenditure has reassured all observers of Indian economy to the multilateral agencies that we are in fact pursuing a very credible fiscal consolidation road map and we will bring fiscal deficit under control while at the same time raising tax to GDP,” he said.