RBI to reckon Union Budget and fiscal consolidation plans
Guwahati, Feb. 7 : The Reserve Bank of India (RBI) is keen to study the ensuing budget for the fiscal year 2013-14 year for a better understanding of the government's consolidation plans.
RBI Governor, D. Subbarao on Thursday said that this approach would enable the RBI to formulate the future policies, particularly the framing of monetary policy for its next review in the month of March.
"As we indicated in our policy review report on January 29, we have taken note of the government's efforts towards fiscal consolidation. We have taken note of the roadmap for fiscal consolidation put up by the Finance Minister. And like everyone else in the country and around the world, we are also looking forward to the budget to get a better understanding of how fiscal consolidation will be done on the way forward," said Subbarao.
Commenting on inflation, he mentioned further developments would be monitored and taken into account.
"We have given our assessment on inflation, there is nothing further to add to what we said a week ago, but as we go forward we will be taking into account further developments and further data that comes," he added.
The RBI had revised the economic growth to 5.5 percent for the financial year ending in March from its previous estimate of 5.8 percent.