RBI Update: Banking sector regulator Reserve Bank of India Governor Shaktikanta Das said that the government's decision to borrow less than market estimates will have a positive impact. Due to this decision, the availability of capital for the private sector will increase and the inflation rate will also reduce and the economy will also gain momentum.
RBI Governor said, The government's borrowing plan for this year is less than the market estimates. Less borrowing means that private sectors will be able to get more loans from banks to meet their needs. He said that the program of less government borrowing will boost economic growth in the country as it will allow the private sector to get loans from more banks to make their investments. RBI Governor said that this decision of the government will also help in reducing the inflation rate.
Finance Minister Nirmala Sitharaman in her interim budget has proposed to borrow Rs 14.13 lakh crore to meet the revenue shortfall during the financial year 2024-25, which is less than last year's borrowing estimate of Rs 15.43 lakh crore. Last year's borrowing was the highest ever. Borrowing estimates for the financial year 2024-25 have been kept low due to increasing revenues and strengthening of the government's fiscal measures.
Regarding the importance of debt for monetary policy, the RBI Governor said, it is kept in mind while making monetary policy. This helps in boosting the growth rate and keeping the inflation rate low. On the debt-GDP ratio, the RBI Governor said that it had reached a high of 88 percent during the Covid period. Since then it has been softening.
Earlier on Monday, Finance Minister Nirmala Sitharaman addressed the meeting of the Central Board of Directors of RBI. In the meeting, the Finance Minister mentioned the things on which emphasis has been laid in the interim budget and also mentioned the expectations from the financial sector. The RBI Board mentioned the global domestic economic situation as well as the global situation and global financial market fluctuations.
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