High powered committee to estimate savings and investments

Mumbai, Dec 31 (UNI) The Reserve Bank of India (RBI) today said that the Government has constituted a high powered committee to undertake a critical review of the available estimates of domestic and national savings and investment in the economy.

The committee, under the Chairmanship of Dr C Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister, will examine various factors and recommend suggestions regarding estimation of household savings, investments in agricultural sector as well as corporate investment and savings, RBI said in a release.

''It will examine if the rapid financial deepening in the economy is getting duly reflected in the estimates of financial savings and suggest improvements, if needed,'' RBI said.

The committee will also recommend methods of strengthening public sector savings and investment estimates by taking account of municipalities, city corporations, gram panchayats and other local governments on the one hand and increased private participation in public investment on the other.

The committee is expected to submit its report within six months from December 26, 2007 the date of the notification.

UNI