RBI cuts repo rate by 25 basis points citing improved combined fiscal deficit, , Reserve Bank of India governor Raghuram Rajan on Wednesday brought down its key policy rate by 25 basis points citing that the fiscal consolidation was better than what numbers show and that the combined fiscal deficit is much lower due to the government transferring more funds to the states.
"The true quantum of fiscal consolidation may be higher than in the headline numbers. Also, the government is transferring a significantly larger amount to the states, without entirely devolving responsibility for funding central programmes.
To the extent that state budget deficits narrow, the general fiscal deficit will be lower," Rajan said in a statement on Wednesday...Read More
"The true quantum of fiscal consolidation may be higher than in the headline numbers. Also, the government is transferring a significantly larger amount to the states, without entirely devolving responsibility for funding central programmes.
To the extent that state budget deficits narrow, the general fiscal deficit will be lower," Rajan said in a statement on Wednesday...Read More
