‘Want to Improve on 3.2% Fiscal Deficit’
“If anything, I think interest rates will move southwards,” the economic affairs secretary said.
Given the thrifty Budget math, the chances of the Reserve Bank of India cutting interest rates at the monetary policy announcement on February 8 have brightened, experts have said.
“The Budget is strong on reforms, built on strong macroeconomic parameters and also strong with regard to fiscal numbers,” Das said.
Jaitley gave himself more room on the fiscal side than had been pledged but Das said this was a marginal increase and could be even be clawed back.
“I would not look at it as a deviation from the fiscal deficit path,” he said. “Instead of 3% for three years, we have done 3.2% and 3%. We are moving gradually in that direction with a clear commitment that it will be 3% in 2018-19 and even during the current year it will be our endeavour to improve upon the fiscal numbers. We would like to improve on 3.2% — it all depends on what kind of revenues we get out of this huge amount of cash which has come into the system.”
Given the thrifty Budget math, the chances of a rate but by RBI at the monetary policy on February 8 have brightened