A file photo of RBI Governor Shaktikanta Das
A file photo of RBI Governor Shaktikanta Das

Fiscal deficit adhered to Budget target, says Shaktikanta Das

  • The current account deficit is expected to be around 2.5% of the GDP in 2018-19
  • India's balance of payment situation eased mainly on account of falling global oil prices

New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das has said the gross fiscal deficit has adhered to budgetary targets, and that the current account deficit is expected to be around 2.5% of the GDP in 2018-19.

Das said this earlier this week while speaking at the "Governor Talks" event organised on the sidelines of the World Bank-International Monetary Fund (IMF) Spring Meetings in Washington DC.

The Governor's statement is the first official confirmation at a senior level of the government achieving the fiscal deficit target of 3.4% in the previous fiscal 2018-19.

The Controller General of Accounts (CGA) normally releases the fiscal deficit figures of the previous fiscal by 14 May.

Das also said the country's current account deficit (CAD) in 2018-19 is expected to come in at around 2.5% of the gross domestic product (GDP).

According to the government, India's balance of payment situation eased mainly on account of falling global oil prices.

RBI, while deciding its rate of interest, also takes into account these macro data indicators of the Finance Ministry.

Earlier this month, the RBI cut the repo, or its short-term lending rate for commercial banks, by 25 basis points to 6%, and lowered the current fiscal's GDP growth forecast to 7.2%.

"The rate cut is in consonance of achieving the medium term objective of maintaining inflation at the 4% level while supporting growth," the statement, announcing the RBI's first bi-monthly monetary policy review of the fiscal, said.

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