RBI’s ECF Panel to Meet Later this Month: Bimal Jalan

RBI’s ECF Panel to Meet Later this Month: Bimal Jalan

New Delhi: RBI’s Economic Framework Panel will meet sometime in mid July to finalise and submit its report to the central bank, panel chairman Bimal Jalan said. “The meeting is most probably in mid July,” Bimal Jalan said. He however declined to throw light on the report.

“I can’t comment on the contents of the report. The report is going to be submitted to the RBI and it will decide what to do with the report,” said the forner Reserve Bank of India Governor. Sources, however, said the panel was likely to recommend modest amount of surplus transfer to the Centre. It is likely to suggest less than one lakh crore of transfers from the RBI's kitty to Finance Minister with the usage limited not to control fiscal deficit or spend on social sector schemes but to retire debt.

The current excess capital is pegged at Rs 9.6 lakh crore. If the government decides to adopt the report, the amount is likely to be transferred to the Finance Minister over the next two years in tranches.

The Budget on July 5 will not mention the transfer of RBI’s surplus amount as on non-tax revenues since the amount and the final report is yet to be out. The report will not be made public till a certain time till the RBI and Finance Minister decide to do so, said sources.

Economic Affairs Secretary Subhash Chandra Garg has expressed dissent on the current view of the panel on low and stretched transfer. (IANS)

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