INSUBCONTINENT EXCLUSIVE:
The transfer by RBI includes a surplus of Rs
reserve and surplus to the government of India, Finance Minister Nirmala Sitharaman on Tuesday said that the government has not yet decided
on how the funds from the central bank will be utilised."How the funds will be utilised I can't say right now
The government will take a decision and we will inform thereafter," Ms Sitharaman told reporters while addressing a press conference in
Pune.The record transfer, including a surplus of Rs
1.23 lakh crore for 2018-19, will boost the government's finances at a time it strives to tackle a nearly five-year low economic growth
with lakhs of estimated job cuts across sectors, and defend its ambitious target of containing fiscal deficit at 3.3 per cent of the GDP.The
transfer of surplus and excess dividend is in line with the recommendations of the Bimal Jalan Committee, which was tasked to review the
Economic Capital Framework of the RBI.Addressing concerns raised on the autonomy of Reserve Bank after its decision to transfer the huge
amount to the government, Ms Sitharaman said, "Bimal Jalan committee had eminent experts in it, was constituted by Reserve Bank itself and
not by the government.""They gave a formula based on which the amount was arrived at
Now, any suggestion about the credibility of the RBI, for me, seems a bit outlandish, considering the committee was appointed by the Reserve
Bank themselves," Ms Sitharaman added.Get Breaking news, live coverage, and Latest News from India and around the world on
TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
