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Shri P. Chidambaram, Hon’ble Union Minister of Finance addressed the Central Board of the Reserve Bank of India today. He indicated that the Union Budget 2013-14, presented against the backdrop of a slowdown in both global and domestic economic growth, is expected to lay the foundation for a sustainable rebalancing of government finances. It is expected that the move towards fiscal consolidation will impart confidence in the economy, support domestic and foreign investments and will boost supply side initiatives.

The Union Finance Minister was addressing the customary post-Budget meeting of the Central Board of the Reserve Bank of India held in New Delhi today. He was accompanied by Shri S.S. Palanimanickam, Minister of State (Revenue); Shri Namo Narain Meena, Minister of State (Expenditure, Banking and Insurance). The meeting was also attended by Shri R. S. Gujral, Finance Secretary; Shri Ravi Mathur, Secretary, Disinvestment; Shri Sumit Bose, Secretary, Revenue; Dr. Raghuram Rajan, Chief Economic Adviser; Government nominee directors on the Central Board Shri Arvind Mayaram, Secretary, Economic Affairs and Shri Rajiv Takru, Secretary, Financial Services.

Besides Dr. D. Subbarao, Governor of the Reserve Bank, Deputy Governors Dr. K.C.Chakrabarty, Shri Anand Sinha, Shri Harun R. Khan and Dr. Urjit R. Patel of the Reserve Bank attended the meeting. The other Directors of the Central Board of the Reserve Bank of India present at the meeting included Dr. Anil Kakodkar,  Shri Kiran S. Karnik,  Shri M.V. Rajeev Gowda, Shri Y.H.Malegam, Prof. Dipankar Gupta, Dr. Najeeb Jung, Shri G. M. Rao, Ms. Ela R. Bhatt, Dr. Indira Rajaraman, Shri Y. C. Deveshwar and Prof. Damodar Acharya.

The Finance Minister stated that 15 per cent investment allowance has been given to give a boost to the manufacturing sector. The Finance Minister said that the Budget also focussed on infrastructure investment to restart the growth engine and that it has addressed divergent constraints in this regard.

To protect savings from inflation, especially those of the poor and middle classes, the Budget has announced various measures including the introduction of inflation indexed bonds. He hoped that these measures would also incentivise the household sector to save in financial instruments rather than purchase gold.

To address gender related aspects of empowerment and financial inclusion, the Budget has proposed to set up India’s first women’s bank as a public sector bank. The Finance Minister reiterated that the Government is committed to the fiscal deficit targets in the Budget.

Earlier, the Governor Dr. D. Subbarao welcomed the Finance Minister and complimented him on the efforts towards fiscal consolidation in the Budget, which was formulated in difficult times.

R. R. Sinha
Deputy General Manager

Press Release : 2012-2013/1515