Govt''s high cash bal could form part of spending plan in FY 12

Posted By: Pti
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Mumbai, Jan 27 (PTI) The Reserve Bank of India (RBI)today said that with the Government holding a high cashbalance, it could form a part of the Government spending plannext fiscal.

"From our (RBI) viewpoint, if the high cash balancesget carried forward, they will be a part of the spending plannext year," RBI Deputy Governor, Subir Gokarn, told reportershere.

On Government borrowing for the next fiscal, hedeclined to comment but pointed to its statement in thisyear''s budget of fiscal deficit target at 4.8 per cent ofgross domestic product for the next fiscal.

"So we do have some estimate of the Government�sborrowing plan," he said.

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