In this meeting, many important issues including the roadmap to reduce the fiscal deficit can be discussed. Significantly, in the current financial year ending on 31 March, due to the Covid-19 pandemic, the fiscal deficit can reach a record 9.5 per cent of GDP.
Finance Minister Nirmala Sitharaman will discuss Budget 2021 with the Central Board of Reserve Bank of India (RBI) today. Many important issues can be discussed in this meeting, including the roadmap to reduce the fiscal deficit.
Significantly, in the current financial year ending on March 31, due to the Kovid-19 epidemic, the fiscal deficit can reach a record 9.5 percent of GDP. The target of fiscal deficit for the next fiscal year 2021-22 has been set at 6.8 per cent of GDP. It is intended to reduce it to 4.5 per cent of GDP by 31 March 2026.
12 lakh crores to borrow
In the budget presented for the financial year 2021-22 by Finance Minister Nirmala Sitharaman, it was estimated that the government may have to borrow about Rs 12 lakh crore during the entire financial year.
Significantly, some years ago the government had said that the fiscal deficit would be reduced to 3 percent of GDP, but the Corona crisis failed all the way. Due to the lockdown in Corona, the economy derailed and a new record of fiscal deficit was set.
Virtual meeting will be held
A news agency has given information quoting sources that due to the Kovid-19 protocol, this meeting will be held virtually for the first time. Earlier this month, Reserve Bank of India Governor Shaktikanta Das said that in the next financial year, it is capable of managing huge borrowings of Rs 12 lakh crore in a smooth manner.
He said that due to an extraordinary event like epidemic, the country had to withdraw from the path of fiscal consolidation. He had said that the Reserve Bank is like a manager of debt for the government and the borrowings were discussed before the budget.
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