Govt's high cash balance could be part of govt's spending plan in FY'12

PTI | January 28, 2011



The Reserve Bank of India (RBI) on Thursday said that with the government holding a high cash balance, it could form a part of the government spending plan next fiscal.

"From our (RBI) viewpoint, if the high cash balances get carried forward, they will be a part of the spending plan next year," RBI deputy governor, Subir Gokarn, told reporters here.

On government borrowing for the next fiscal, he declined to comment but pointed to its statement in this year's budget of fiscal deficit target at 4.8 per cent of gross domestic product for the next fiscal.

"So we do have some estimate of the government's borrowing plan," he said.

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