The Government does not need RBI surplus to finance its fiscal deficit target, Finance Minister Arun Jaitley aid on Monday, while stressing that the Modi led NDA dispensation has the best track record of managing the deficit than any other previous regime.
Replying to a debate on the second batch of supplementary demands for grants, Jaitley said the RBI surplus could be used to alleviate poverty and recapitalise public sector banks. The House later passed the supplementary demand for
grants for the current fiscal to permit gross additional expenditure of Rs 85,948.86 crore, amid sloganeering by
Congress and AIADMK members on Rafale and Cauvery issues.
While Rs 41,000 crore would go in for capital infusion into public sector banks, Rs 2,345 crore would be infused into
debt laden national carrier Air India. “This government has the best track record than any other previous government in managing fiscal deficit. We do not need RBI reserves to manage the fiscal deficit… It is a priority of the government to maintain fiscal discipline, Jaitley said.