Union Finance Minister Arun Jaitley clarified that the government does not want any additional funds from the Reserve Bank or any other institution to achieve its fiscal deficit target. However, Jaitley also said that whatever new structure will be created for the capital structure of the Reserve Bank and the additional funds that it will get, it can be used by future governments in the eradication of poverty eradication programs in the coming years.
“We do not need any additional funds from other institutions to achieve our fiscal deficit target,” the finance minister told in an interview to a TV channel. I want to make it clear that the government has no such intention. We are also not saying that in the next 6 months, give us some money. I do not want it.’
Jaitley said, “We are just saying that there should be some discussion and some rules about this, under which the structure of capital structure should be fixed for the Reserve Bank.” He said that in this kind of surplus amount, it can be used by governments in future for poverty alleviation programs over the next several years.
Explain that the current fiscal budget aims to bring India’s fiscal deficit to 3.3% of GDP. On criticizing the government’s view on the Reserve Bank’s fund, Jaitley said that there is a framework for the central structure of the central bank in the whole world. There is a provision to fix the reserve amount kept by the central bank.
At its meeting this month, the central board of the Reserve Bank has decided to set up a high level expert committee to determine the structure of the financial capital structure (ECF) of the Reserve Bank. This committee will suggest suggestions about the appropriate level of reserve capital living with the central bank. It is believed that the Reserve Bank has kept a huge fund of Rs 9.59 lakh crore at this time.