Govt should desist from any fiscal adventurism: Pronab Sen
The Reserve Bank of India (RBI) will transfer Rs 99,122 crore as a surplus to the government. The central board has decided to maintain contingency risk buffer by 5.5 percent. Former Chief Statistician Pronab Sen shared his outlook.
The Reserve Bank of India (RBI) will transfer Rs 99,122 crore as a surplus to the government. The central board has decided to maintain a contingency risk buffer by 5.5 percent. Former Chief Statistician Pronab Sen shared his outlook.
“The bulk of the profits that have been made is on the revaluation of the currency holdings. That is a notional figure. How the RBI wishes to give the money to the government would determine this. Normally one would keep it in a revaluation fund,” he said.
“Although the RBI will not fiddle around the G-sec Acquisition Programme (G-SAP) at this time, G-SAPs are only a part of the overall open market operations (OMO) of RBI, they will adjust it in some other OMOs,” he added.
In terms of government priorities, he shared, “At the moment government should desist from any fiscal adventurism. But the humanitarian component has to be covered and there have been sufficient funds for that. Although I suspect this time around the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will not be able to absorb as much money as it did last year because of the problems in the rural area, which was not there last year.”
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(Edited by : Bivekananda Biswas)
First Published: May 21, 2021 3:58 PM IST
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