India's government denies reports it is seeking ₹3.6 billion from its central bank

Dismissing reports that the government sought ₹3.6 billion from the Reserve Bank of India reserves as "misinformed speculation," Economic Affairs Secretary Subhash Chandra Garg on Friday said there was no such proposal and that the country's fiscal deficit target was on track.

The government will meet its budget gap aim of 3.3% of Gross Domestic Product for the current financial year ending March, he stressed.

He, however, said that the proposal under discussion between the government and the RBI is to fix "appropriate" economic capital framework of the RBI.

"Lot of misinformed speculation is going around in media. Government's fiscal math is completely on track. There is no proposal to ask RBI to transfer ₹3.6 or ₹1 billion, as speculated," Garg said in a tweet.

Asserting that the government's fiscal deficit target was on track, another tweet from him said: "...Government has actually foregone ₹700 billion of budgeted market borrowing this year."

Reports last week said that the government had proposed that the RBI transfer ₹3.6 billion from its reserves, which the central bank refused.

See also:
The spat between India’s central bank and the government gets more heated as the finance minister blames it for not doing enough to prevent the country’s bad loan problem
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