RBI Ruled Out The Possibilities of Printing More Money In Dealing with Fiscal Deficit

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RBI Governor Shaktikanta Das said the central bank has no plans to monetise the rising fiscal deficit. This is the third consecutive year that the government has revised its fiscal deficit target.

The budget has pegged fiscal deficit at 3.8 per cent for the current fiscal year, up from 3.3 per cent projected in the previous budget; and at 3.5 per cent for FY21, up from 3 per cent estimated in the July 2019.

Finance Minister Nirmala Sithraman in her recent Union Budget presentation speech mentioned the fiscal deficit situation and explained why the targets are been revised again.

The government has already crossed the fiscal deficit at 132 per cent of the estimate as of December end.