NEW DELHI: Former Union finance minister P Chidambaram on Sunday requested the Centre what used to be its "tearing hurry" to "fix" the capital framework of Reserve Bank of India when the ruling dispensation had just four months to complete the term.
In a chain of tweets, the senior Congress leader slammed the government for allegedly in search of price range from the RBI in spite of claiming that its (Centre) fiscal math used to be right kind.
"The NDA government has competed 4 years and 6 months of its term. It has effectively 4 months left. What is the tearing hurry to 'fix' the capital framework of RBI?" he said.
Chidambaram said if the government did not need any more money this monetary year, why used to be it "mounting pressure" at the central financial institution within the final four months of its tenure.
"Why did it keep silent for 4 years and 6 months?" he said.
The Congress leader said the government had claimed that its "fiscal math is correct" and "boasts" that it had given up Rs 70,000 crore of borrowing for 2018-19.
"If so, why does it need money from the reserves of RBI this year?" he said.
The central government had on Friday said it used to be discussing an "appropriate" dimension of capital reserves that the central financial institution must care for, however denied in search of a massive capital transfer from the RBI.
The RBI has a massive Rs nine.59 lakh crore reserves and the government, if experiences are to be believed, needs the central financial institution to phase with a 3rd of that fund -- a subject matter which at the side of easing of norms for vulnerable banks and raising liquidity has introduced the two at loggerheads in contemporary weeks.
Economic Affairs Secretary Subhash Chandra Garg took to Twitter on Friday to clarify that the government used to be no longer in any dire need of price range and that there used to be no proposal to ask the RBI to transfer Rs 3.6 lakh crore.
"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he tweeted.
"Government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. Government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year," Garg said.
The reliable said the one proposal underneath discussion used to be to "fix appropriate economic capital framework of RBI".
Economic capital framework refers to the possibility capital required via the central financial institution whilst taking into account other dangers.
In a chain of tweets, the senior Congress leader slammed the government for allegedly in search of price range from the RBI in spite of claiming that its (Centre) fiscal math used to be right kind.
"The NDA government has competed 4 years and 6 months of its term. It has effectively 4 months left. What is the tearing hurry to 'fix' the capital framework of RBI?" he said.
If the government does no longer need any more money this monetary year, why is it mounting pressure on RBI within the final… https://t.co/iDqcptO48K
— P. Chidambaram (@PChidambaram_IN) 1541900809000Chidambaram said if the government did not need any more money this monetary year, why used to be it "mounting pressure" at the central financial institution within the final four months of its tenure.
"Why did it keep silent for 4 years and 6 months?" he said.
The Congress leader said the government had claimed that its "fiscal math is correct" and "boasts" that it had given up Rs 70,000 crore of borrowing for 2018-19.
Government claims that its fiscal math is right kind. It boasts that it has given up Rs 70,000 crore of borrowing for… https://t.co/LWm40tQ5qc
— P. Chidambaram (@PChidambaram_IN) 1541900807000"If so, why does it need money from the reserves of RBI this year?" he said.
The central government had on Friday said it used to be discussing an "appropriate" dimension of capital reserves that the central financial institution must care for, however denied in search of a massive capital transfer from the RBI.
The RBI has a massive Rs nine.59 lakh crore reserves and the government, if experiences are to be believed, needs the central financial institution to phase with a 3rd of that fund -- a subject matter which at the side of easing of norms for vulnerable banks and raising liquidity has introduced the two at loggerheads in contemporary weeks.
Economic Affairs Secretary Subhash Chandra Garg took to Twitter on Friday to clarify that the government used to be no longer in any dire need of price range and that there used to be no proposal to ask the RBI to transfer Rs 3.6 lakh crore.
"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he tweeted.
"Government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. Government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year," Garg said.
The reliable said the one proposal underneath discussion used to be to "fix appropriate economic capital framework of RBI".
Economic capital framework refers to the possibility capital required via the central financial institution whilst taking into account other dangers.
What is govt's 'tearing hurry' to 'fix' RBI capital framework: Chidambaram
![What is govt's 'tearing hurry' to 'fix' RBI capital framework: Chidambaram]()
Reviewed by Kailash
on
November 11, 2018
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