Chidambaram gives RBI another hint to cut interest rates
09 Mar 2013
Union finance minister P Chidambaram, continuing to push for industry, said today he hoped that the Reserve Bank of India would consider lowering policy rates in view of the government's measures towards achieving fiscal.
''On the fiscal consolidation path, the government has walked the talk. The RBI, of course, will take into account the overall broad economic situation and what happens between now and 19 March and take a call,'' Chidambaram said after a meeting with the RBI board on Friday.
The central bank's mid-term review of the economy and interest rates is due on 19 March.
Chidambaram said the government had fulfilled its commitment towards fiscal consolidation and now the ball was in RBI's court.
''We have delivered on fiscal consolidation path chalked out by the Dr Kelkar Committee. We have remained under 5.3 per cent as promised, and we have shown, next year we will be at 4.8 per cent,'' he said.
The finance minister said that the borrowing programme for the next fiscal is an indicator of fiscal prudence the government is adopting. The government on Friday sought Parliament's approval to spend an additional Rs49,715.54 crore, primarily to meet the outgo on fuel, fertiliser and food subsidies in the current financial year.
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