DEA Secretary Subhash Chandra Garg has ruled out any immediate request for transfer of a part of RBIâ€™s funds. But he said the government is proposing to review and define uses of funds on the central bankâ€™s balance sheet.
Amid a tussle between the Reserve Bank of India and the central government, the government said it was not eyeing taking away a part of the RBIâ€™s surplus, a demand believed to be a bone of contention between the two.
â€œ[A] lot of misinformed speculation is going around in media. The governmentâ€™s fiscal math is completely on track. There is no proposal to ask RBI to transfer 3.6 or 1 lakh crore, as speculated,â€� Subhash Chandra Garg, Secretary of the Department of Economic Affairs, tweeted today.
He pointed out that the government had successfully brought down its fiscal deficit â€“ or the gap between the governmentâ€™s expenses and earnings â€“ from 5.1 percent of GDP in 2013-14 to an estimated 3.3 percent this fiscal.
The secretary, however, tweeted that the only proposal under discussion is â€œto fix appropriate economic capital frameworkâ€� of the Reserve Bank.
The Economic Capital Framework (ECF) defines the central bankâ€™s capital and internal reserves policy.