Union Finance Minister Nirmala Sitharaman to address RBI board tomorrow

  1. Finance Minister is scheduled to address the post-budget meeting of the RBI’s central board.She will highlight the key points of the Budget including the fiscal consolidation roadmap.
  2. The government has lowered the fiscal deficit target for 2019-20 at 3.3% of GDP from 3.4% set in the Interim Budget presented on February 1, 2019.
  3. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues.
  4. The Centre has also came out with a roadmap to reduce the fiscal deficit to 3% of the gross domestic product(GDP) by 2020-21 and eliminate the primary deficit.
  5. Primary deficit refers to the deficit left after subtracting interest payments from the fiscal deficit.
  6. She would also address about the announcements made in the Budget to spur growth by touching almost all sectors of the economy with the objective of achieving a $5 trillion economy by 2024-25.
  7. The Budget has also announced opening up of aviation, insurance and media sectors to foreign direct investment(FDI).
  8. It has also proposed measures to improve NBFCs access to funding by providing a limited backstop for the purchase of their assets.
  9. The government will provide a partial guarantee to state banks for the acquisition of up to ₹1 lakh crore of highly-rated assets from non-bank finance companies(NBFC).
  10. The Reserve Bank of India has been made regulator of housing finance firms as well replacing the National Housing Bank(NHB).Apart from this,the government has also budgeted a dividend from the Reserve Bank of India amounting to about ₹90,000 crore.