News: Full float of rupee after proper checks
(PTI 31/05/2006) New Delhi - Government on Wednesday made it clear that full float of rupee would be allowed only after putting in place a regulatory mechanism to ensure financial stability and creating congenial atmosphere like containing revenue and fiscal deficits.
"We are gradually moving towards full Capital Account Convertibilty, but first we have to create conditions congenial for that," Minister of State for Finance P K Bansal said in an Assocham seminar here.
Fiscal deficit and revenue deficit are matters of concern. But "we have reason to be optimistic to achieve three per cent fiscal deficit and zero per cent revenue deficit by 2008-09," he said.
With the implementation of fiscal responsibility and Budgetary Management Act, both the centre and state governments are serious about fiscal consolidation.
India is a strong economy, that is the condition which has to be created before moving to full CAC, which has to be gradual, he said.
Bansal said at present India has permitted limited capital flow into many sectors and talks are on for allowing foreign investment in retail sector.
He said the government has also liberalised the borrowing norms for raising capital from overseas market.
He said public expenditure is a matter of concern but with implementation of outcome budget, the ministeries have been made more accountable.
"We are gradually moving towards full Capital Account Convertibilty, but first we have to create conditions congenial for that," Minister of State for Finance P K Bansal said in an Assocham seminar here.
Fiscal deficit and revenue deficit are matters of concern. But "we have reason to be optimistic to achieve three per cent fiscal deficit and zero per cent revenue deficit by 2008-09," he said.
With the implementation of fiscal responsibility and Budgetary Management Act, both the centre and state governments are serious about fiscal consolidation.
India is a strong economy, that is the condition which has to be created before moving to full CAC, which has to be gradual, he said.
Bansal said at present India has permitted limited capital flow into many sectors and talks are on for allowing foreign investment in retail sector.
He said the government has also liberalised the borrowing norms for raising capital from overseas market.
He said public expenditure is a matter of concern but with implementation of outcome budget, the ministeries have been made more accountable.
posted by InCar Group Press Room at 11:02
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