Government says not seeking Rs 3.6 lakh crore RBI reserve, dismisses media reports

Economic Affairs Secretary Subhash Chandra Garg in a series of tweets said that government’s fiscal math is completely on track.

Government says not seeking Rs 3.6 lakh crore RBI reserve, dismisses media reports

New Delhi: The government on Friday dismissed recent media reports on seeking Rs 3.6 lakh crore from RBI reserve stating that a lot of misinformed speculation is going around in media.

Economic Affairs Secretary Subhash Chandra Garg in a series of tweets said that government’s fiscal math is completely on track and there is no proposal to ask RBI to transfer 3.6 or 1 lakh crore, as speculated.

Garg said that only proposal under discussion is to fix appropriate economic capital framework of RBI.

“Government’s FD in FY 2013-14 was 5.1 percent. From 2014-15 onwards, government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3 percent. Government has actually foregone Rs 70,000 crore of budgeted market borrowing this year,” he added.

A section of media had earlier claimed that at the heart of the RBI-government standoff was a proposal by the Finance Ministry seeking to transfer a surplus of Rs 3.6 lakh crore, more than a third of the total Rs 9.59 lakh crore reserves of the central bank, to the government.

Following media reports, the Congress party has has accused the government of “destroying” institutions with its alleged strong arm tactics, the differences between the Modi government and the RBI came out in public domain after a deputy governor raised concerns about the central bank’s autonomy and warned that the governments that did not respect the central bank’s independence would sooner or later incur the wrath of financial markets.

With PTI Inputs

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