New Delhi: Dismissing recent media reports that it had sought Rs 3.6 lakh crore from the RBI reserve, the Government on Friday said a lot of misinformed speculation was circulating in media. According to ANI, Economic Affair Secretary Subhash Chandra Garg said, “A lot of misinformed speculation is going around in media. The Government’s fiscal math is completely on track. There is no proposal to ask the RBI to transfer 3.6 or 1 lakh crore, as speculated.” (Also read: ‘PM Modi Needs Rs 3.6L Crore to Fix Mess His Economic Theories Created’)
In a series of tweets, Garg also explained that the only proposal being discussed was to fix an appropriate economic capital framework of RBI. “The Government’s FD in FY 2013-14 was 5.1 percent. From 2014-15 onwards, government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3 percent. Government has actually foregone Rs 70,000 crore of budgeted market borrowing this year,” he added.
Many media reports had claimed that the bone of contention between the RBI and the Centre was 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 reports gave the Congress enough ammunition to gun for the Government and accused it of “destroying” institutions. The differences between the Modi government and the RBI came out after deputy governor of the Central Bank, Viral Acharya, raised concerns about the institution’s autonomy and warned that governments that did not respect the Central bank’s independence would sooner or later incur the wrath of financial markets.