(FE)
In a big relief to the Modi government, Reserve Bank of India has not only accepted the recommendations of Bimal Jalan Panel to transfer a huge sum of Rs 1.76 lakh crore to the Union government but the RBI is also implementing the decision forthwith. According to a senior RBI official, this huge sum will be credited to the Union government’s books of accounts today, just a day after the approval of the Bimal Jalan panel’s recommendations by the Bank’s Central Board. “RBI central board accepts Bimal Jalan Committee recommendations and approves surplus transfer to the government, said the Reserve Bank in a statement issued on late Monday evening.
“I think tomorrow (Tuesday) it should reflect in the government’s books,” a senior Reserve Bank official . Reserve Bank’s decision to transfer this huge amount in one go comes as a big relief for the Modi government that is desperately looking for funds to kick-start a slowing economy as Prime Minister Modi aims to make India a $5 trillion economy in the next five years. It requires a sustained GDP growth rate of over 9% for the next five years to emerge as $5 trillion economy from present $2.7 trillion.
