RBI chief asks centre to drastically cut borrowings
RBI chief asks centre to drastically cut borrowings

IANS

Gandhinagar, Jan 11 (IANS) Reserve Bank of India Governor Urjit Patel on Wednesday warned that the government's debt to GDP ratio was constraining the country's sovereign ratings and called upon the central government to work towards reducing high central and state borrowings.

In his address at the biennial Vibrant Gujarat Global Investors Summit here, Patel said the country's cumulative fiscal deficit of the states and the centre was among the highest in G20 countries, at 6.4 per cent of the GDP for financial year 2016-17.

Citing data from the International Monetary Fund (IMF), he said: "We have to take cognisance of these comparisons and facts as we go forward to make progress. Specifically, this will help us to better manage risks for ourselves and thereby mitigate financial volatility."

The RBI chief said that low and stable inflation was indeed important but at the same time, India must ensure its medium-term consumer-prices based inflation target of four per cent is "secured on a durable basis."

© 2017 IANS India Private Limited. All Rights Reserved.
The reproduction of the story/photograph in any form will be liable for legal action.

For news, views and gossips, follow @IANSLIVE at Twitter. Find us on Facebook too!

Update: 11-January-2017

RELATED TOPICS

BUSINESS



VIDEO GALLERY

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

© 2017 IANS India Private Limited.
Don't forget to bookmark us! (CTRL-D)
Site designed by IANS