11 July : Finance Minister Pranab Mukherjee addressed the Central Board of Directors of the Reserve Bank of India in New Delhi on Saturday and stressed the need for striking proper balance between private and public sector investments in a press conference after the meet.
Mukherjee said that the government’s fiscal policy is in tandem with RBI’s monetary policy. FM allays fear of high govt borrowing
Further, Mukherjee allayed fears that high government market borrowing, pegged at about Rs 4 lakh crore, for the current fiscal will leave little resources for the private sector.
Just as the Reserve Bank managed market borrowings of the government, which increased after the stimulus packages were announced last fiscal, without disrupting markets, similarly it will handle it this fiscal, Mukherjee told reporters.
The government’s borrowing is projected to be around Rs 4 lakh crore for this fiscal to fund its widening fiscal deficit pegged at 6.8 per cent of GDP.Asked whether interest rate will be cut he said, appropriate actions would taken as and when required.