New Delhi, Nov 9: The Government on Friday refuted the reports doing rounds that it has asked the Reserve Bank of India (RBI) to transfer Rs 3.6 lakh crore or 1 lakh crore from the Central Bank reserves, saying that its calculations are “completely on track”.
Department of Economics Affairs Secretary S C 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 said the Government’s concern was to fix the appropriate economic capital framework of the RBI. That framework is used to decide the adequate amount of reserves the central bank should maintain.
Exuding confidence in the government's fiscal math, the Secretary said, “Government’s FD 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 70000 crore of budgeted market borrowing this year.”
The government and the RBI have been clashing on several issues including the reserves question, and a government proposal to ease the capital and lending curbs for state-run banks. The rift has widened sharply in the past few weeks and will be taken up at the RBI's forthcoming board meeting on November 19. (UNI)