RBI Governor Raghuram Rajan said the country was broadly moving in the direction of boosting growth.
New Delhi: India's headline fiscal deficit target for the next fiscal year is a comfort for the Reserve Bank of India, its Governor Raghuram Rajan said on Saturday, amid hopes of a policy rate cut.
Finance Minister Arun Jaitley committed to fiscal discipline in his February 29 Budget, lowering the deficit target further to 3.5 per cent of gross domestic product in the fiscal year that starts next month, surprising investors.
Mr Rajan told reporters the central bank's board gave substantial compliments to the finance minister for budget and fiscal discipline. He said the country was broadly moving in the direction of boosting growth.
Finance Minister Arun Jaitley committed to fiscal discipline in his February 29 Budget, lowering the deficit target further to 3.5 per cent of gross domestic product in the fiscal year that starts next month, surprising investors.
Mr Rajan told reporters the central bank's board gave substantial compliments to the finance minister for budget and fiscal discipline. He said the country was broadly moving in the direction of boosting growth.
© Thomson Reuters 2016
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