Arun Jaitley said government has best track record of keeping fiscal deficit under checkNew Delhi:Finance Minister Arun Jaitleyon Monday said government was not seeking Reserve Bank of India reserves to meet fiscal deficit target but to utilise it foraccelerating poverty alleviation programmes and recapitalisingstate-owned banks.Replying to a debate on second batch of supplementarydemands for grants in Lok Sabha, minister said that Narendra Modi government has best track record of keepingfiscal deficit under check.The house later passed supplementary demand for grantsfor current fiscal year to provide additional expenditure of Rs 85,948.86 crore, about half of which is for capital infusionin public sector banks.Referring to issues concerning Economic CapitalFramework (ECF) of RBI, Mr Jaitley said that central banks ofmost of countries keep a reserve of 8 per cent, while someconservative central banks maintain reserves of 14 per cent.The RBI was maintaining a reserve of 28 per cent, hesaid, adding that expert committee would decide on theappropriate reserve of central bank so that surplus funds could be utilised for funding poverty alleviation programmesand recapitalising state-owned banks."This government has best track record than anyother previous government in managing fiscal deficit.
We do not need RBI reserves to manage fiscal deficit," Mr Jaitleysaid.He said government has brought down fiscaldeficit, and kept inflation and current account deficitunder check, while country retained fastest-growingeconomy tag for fiveyears.The finance minister also said that it was onlyduring tenure of Modi government that country became thefastest growing major economy in world, ahead of China.Mr Jaitley also said that demonetisation and Goods andServices Tax (GST) has helped increase tax base and allocate more funds for poverty alleviation and social sector programmes.The number of income tax return filers have gone up from3.8 crore during UPA regime, to 6.86 crore currently.
When NDA government completes its five-year term in2019, number would double from 3.83 crore, he added.With regard to concerns expressed by some members overagrarian situation, Mr Jaitley said government would take all steps to support farmers."Whatever steps need to be taken at end, government will take it," he said, amid sloganeering by Congress party over Rafale issue.