Govt does not need extra funds from RBI to meet fiscal deficit target: Jaitley
New Delhi, Nov 24: Finance Minister Arun Jaitley has said the government does not need any extra funds from the Reserve Bank or any other institution to meet the fiscal deficit target.
However, he added that extra funds, which may accrue from the new capital framework of the Reserve Bank, can always be used for poverty alleviation programmes over the years by future governments.
"We don't need any extra funds from any other institution to finance our fiscal deficit. Let's be very clear that's not the intention of the government. And we are not saying that in next six months give me some money. I don't need it, the minister said in an interview to TV channel Times Now.
India's fiscal deficit is slated to come down to 3.3 per cent of GDP at the end of the current fiscal.
Responding to criticism that the government was eyeing RBI's reserves, Jaitley said globally central banks have a capital framework which determines the amount of funds that ought to be maintained as reserves.
"All we are saying is there has to be some discussion and some norms under which Reserve Bank will have a capital framework," he said, adding that surplus funds could be used for poverty alleviation programmes by future governments over the next several years.
The RBI board at its meeting earlier in the month decided to set up a high-level committee for examining the Economic Capital Framework (ECF) to determine the appropriate levels of reserve the central bank should hold.
The RBI is reported to be holding a massive Rs 9.59 lakh crore of reserves.
Answering questions with regard to the autonomy of the Reserve Bank, Jaitley said it has to be exercised within the framework of law.
"The government's viewpoint is that we respect and we will always maintain the autonomy within the framework of the laws which have been laid down," he said.
The government, Jaitley added, would continue to flag issues with the Reserve Bank in the larger interest of the economy, and there has to be coordination between the central bank and the government
"If there are sectors of economy which are starved of liquidity or credit, as a sovereign government... we certainly will flag those issues wherever the RBI has the authority to decide certain things," the minister said, adding there is no institutional failure.
He further said that during the Congress-led UPA regime, fiscal deficit went as high as 6 per cent of the GDP.
"We inherited a 4.6 per cent fiscal deficit. This government since 1947 in five-year tenure has the best record of fiscal prudence that any government has. From 4.6 per cent this year we are going to bring it down to 3.3 per cent," he added.
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Another North Goa nightclub sealed; Kejriwal says corruption led to fire tragedy
Panaji (PTI): As part of a crackdown against tourist establishments violating laws and safety norms in the aftermath of the Arpora fire tragedy, Goa authorities on Saturday sealed a renowned club at Vagator and revoked the fire department NOC of another club.
Cafe CO2 Goa, located on a cliff overlooking the Arabian Sea at Vagator beach in North Goa, was sealed. The move came two days after Goya Club, also in Vagator, was shut down for alleged violations of rules.
Elsewhere, campaigning for local body polls, AAP leader Arvind Kejriwal said the fire incident at Birch by Romeo Lane nightclub at Arpora, which claimed 25 lives on December 6, happened because the BJP government in the state was corrupt.
An inspection of Cafe CO2 Goa by a state government-appointed team revealed that the establishment, with a seating capacity of 250, did not possess a no-objection certificate (NOC) of the Fire and Emergency Services Department. The club, which sits atop Ozrant Cliff, also did not have structural stability, the team found.
The Fire and Emergency Services on Saturday also revoked the NOC issued to Diaz Pool Club and Bar at Anjuna as the fire extinguishers installed in the establishment were found to be inadequate, said divisional fire officer Shripad Gawas.
A notice was issued to Nitin Wadhwa, the partner of the club, he said in the order.
Campaigning at Chimbel village near Panaji in support of his party's Zilla Panchayat election candidate, Aam Aadmi Party leader Kejriwal said the nightclub fire at Arpora happened because of the "corruption of the Pramod Sawant-led state government."
"Why this fire incident happened? I read in the newspapers that the nightclub had no occupancy certificate, no building licence, no excise licence, no construction licence or trade licence. The entire club was illegal but still it was going on," he said.
"How could it go on? Couldn't Pramod Sawant or anyone else see it? I was told that hafta (bribe) was being paid," the former Delhi chief minister said.
A person can not work without bribing officials in the coastal state, Kejriwal said, alleging that officers, MLAs and even ministers are accepting bribes.
