No proposal to ask RBI to transfer Rs 3.6 lakh crore
New Dlehi, Nov 9: The Department of Economic Affairs on Friday clarified that there was no proposal to ask RBI to transfer Rs 3.6 or 1 lakh crore, as speculated in media.
SC Garg, Department of Economic Affairs (DEA) Secretary, said, "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."
"Government's Fiscal Deficit in FY 2013-14 was 5.1 per cent. 2014-15 onwards, the GoGovernmentvt succeeded in bringing it down. We'll end FY 2018-19 with FD of 3.3 per cent, " said (DEA) Secretary.
He further said that the Government has foregone Rs 70000 crore of budgeted market borrowing this year. The only proposal under discussion is to fix RBI's apt economic capital framework.
There were media reports speculating 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.
The Finance Ministry claims that the existing economic capital framework - which governs the RBI's capital requirements and terms for the transfer of its reserves to the government - is based on a very "conservative" assessment of risk by the central bank.
The Congress had accused Prime Minister Narendra Modi's government of being bent on "snatching" the contingency reserves of the RBI amid a tussle that has seen the central bank officials call out for greater autonomy.