The RBI chief says it’s likely that the Indian government will meet its fiscal deficit goal.
MUMBAI (Reuters) – In an interview with CNBC-TV18 on Monday, Governor Shaktikanta Das said that the Indian government is likely to stick to its budgeted fiscal deficit goal, and there may not be a need to borrow more money just yet.
In an effort to protect consumers from rising prices caused by high inflation, India made a number of changes to the way it taxes important goods on Saturday.
Experts said that the latest moves will likely make budget worries worse and make it less likely that the government will be able to meet its deficit goal of 6.4% of GDP for 2022-23.
Governor Das said that the government and the central bank were working together to control inflation, which has stayed well above the target range of 2–6% set by the central bank.
On the other hand, Das said that there isn’t a one-to-one relationship between rising government spending and the need for more borrowing and that he thinks the government is committed to meeting its fiscal deficit target.
