Rediff Logo
Home > Money > Reuters > Report
April 23, 2002 | 1135 IST
  Money Matters

 -  Business Headlines
 -  Corporate Headlines
 -  Business Special
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff


 Secrets every
 mother should

 Your Lipstick

 Make money
 while you sleep.

 Bathroom singing
 goes techno!

 Search the Internet
 Sites: Finance, Investment

Print this page Best Printed on  HP Laserjets
E-Mail this report to a friend

India's deficit manageable but limits policy: RBI

India's fiscal deficit, at current levels, may be manageable but it limits the leeway to manage unforeseen developments, according to the central bank's Deputy Governor Y V Reddy.

"Fiscal empowerment appears to be essential for obvious reasons," Reddy said in a speech, released on Tuesday on the central bank's Web site

The speech was delivered at Cornell University in the United States on April 19, it said.

"While the existing level of fiscal deficit may be manageable, the headroom available for meeting unforeseen circumstances appears rather limited," he said, reiterating similar statements by central bank officials in the past.

Reddy also reiterated the central bank's commitment to reduce banks' cash reserve ratio to three per cent over time, from 5.5 per cent.

India has consistently overshot its fiscal deficit targets despite a decade of economic reforms.

In the year ended March, it is estimated to have posted a fiscal deficit of 5.7 per cent of GDP, sharply higher than its initial estimate of 4.7 per cent.

It has set a fiscal deficit target of 5.3 per cent of GDP for the current financial year.

The Rediff Budget Special

Back to top
(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report