Deficit not to exceed
5.3%, says Mayaram GURGAON, NOV 8:
The Finance Ministry hopes that
the National Investment Board and new banking licences will soon see the light.
At the same time, it has reassured to keep the fiscal deficit within the
revised target of 5.3 per cent. Economic Affairs Secretary, Arvind Mayaram,
said that the proposal for setting up NIB is likely to be placed before the
Cabinet within next 2-3 weeks.
Talking to reporters on the
sidelines of the World Economic Forum on India, he also hoped that new banking
licences will be awarded soon.The National Investment Board (NIB), as proposed
by the Finance Ministry, envisages an Empowered Standing Committee of the
Cabinet under the Chairmanship of the Prime Minister.The proposed board, once approved,
aims to facilitate and ensure time-bound grant of various licences, permissions
and approval as a mechanism. This will be triggered in case of the failure of
the concerned ministries/department to act in time to take decisions.The
Finance Ministry is trying to find a way out for granting new banking licences
even when the Banking Law (Amendment) Bill is pending in Parliament. The
Reserve Bank of India
Fiscal deficit Mayaram also said that he
was confident of achieving the Rs 30,000 crore disinvestment target set for
this fiscal. With or without disinvestment, fiscal deficit will not cross the
target of 5.3 per cent at the end of the fiscal, he added.The Government's
plans for additional borrowings are also likely to be firmed up in January or
February, Mayaram confirmed, while saying, “We will assess our needs for
borrowing in January-February.’’The Government is reportedly likely to borrow
as much as Rs 25,000 crore to be able to check the fiscal deficit at 5.3 per
cent of GDP, which was revised from the budgeted target of 5.1 per
cent.Referring to the upcoming 2G spectrum auction, Mayaram said that the
Government will ease the current External Commercial Borrowings cap, which will
help reduce the costs for telecom companies and enable them to pay the spectrum
fee in one lumpsum at lower interest rates, instead of
in installments at higher rates.
aesha.datta@thehindu.co.inhttp://www.thehindubusinessline.com/industry-and-economy/economy/govt-to-push-nib-new-banking-licences/article4077075.ece?homepage=true
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