Government has no proposal to ask RBI for Rs 3.6 lakh crore, fiscal math on track, says Subhash Chandra Garg

By: |
Updated: November 9, 2018 2:16:11 PM

Clearing the air on the plan to seek Rs 3.6 lakh crore from the RBI, Department of Economic Affairs Secretary Subhash Chandra Garg on Friday said that the government’s “fiscal math is completely on track” and no such proposal is being considered.

BRICS, credit rating, India, Subhash Chandra GargThe only proposal under discussion is to put in place appropriate economic capital framework of RBI, Subhash Chandra Garg tweeted. (IE)

Clearing the air on the plan to seek Rs 3.6 lakh crore from the RBI, Department of Economic Affairs Secretary Subhash Chandra Garg on Friday said that the government’s “fiscal math is completely on track” and no such proposal is being considered. The only proposal under discussion is to put in place appropriate economic capital framework of RBI, Subhash Chandra Garg tweeted.

“Lot of misinformed speculation is going around in media. Government’s fiscal math is completely on track. There is no proposal to ask RBI to transfer 3.6 or 1 lakh crore, as speculated..”, he tweeted.

Also read: Share market LIVE updates: Sensex recovers from day’s low, Nifty reclaims 10,600; Yes Bank, Asian Paints up 4%

Exuding confidence about government’s fiscal math, he said, it will stick to the fiscal deficit target of 3.3 per cent for the current financial year ending March 31, 2019.

Also read: Modi government’s unique disinvestment: Enemy share sale to fetch Rs 3,000 crore; here’s what it means

“Government’s FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. Government has actually foregone 70,000 crore of budgeted market borrowing this year,” Subhash Chandra Garg also said.

Meanwhile, the central bank paid government a dividend of Rs 30,659 crore, which was not only less than half the amount transferred in the previous year (Rs 65,876 crore), but also the lowest since 2011-12 in the year ended June.2017.The latest dividend by the central bank was also only 91 percent of the dividend collection expected in Budget 2018.

Do you know What is Centrally Sponsored Scheme, Non Tax Revenue, Non Debt Capital Receipts, Consolidated Fund of India, Disinvestment? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Demonetisation Anniversary: Government, Opposition in a verbal slugfest again
2GST refunds of Rs 82,775 crore to exporters cleared; Rs 5,400 crore pending as on October 31
3Unemployment rate reaches 2-year high of 6.9% in October, shows CMIE data; key things to know