Finance Minister Arun Jaitley has dismissed the talk of a fiscal stimulus package for boosting growth in the wake of the recent slowdown. “I have not used that phrase (fiscal stimulus). I said we will respond to situations and your fraternity translated the word respond as meaning stimulus,” Jaitley told a questioner, remarking: “Whenever the (additional) measures are taken, you will come to know of it.”
The media has spoken about fiscal stimulus and “you should ask” them on it, said Jaitley. “Your fraternity translated the word respond as meaning stimulus. So you are the ones who should be answering and not me,” said Jaitley.
His remarks came amid an increased speculation over a possible fiscal stimulus which can go above Rs 40,000 crore after six successive quarters of dip in the economic growth, which slid to 3-year low of 5.7 per cent in the April-June quarter.
Noting that his Government had inherited a huge fiscal deficit just three-and-a-half years ago: 4.6 per cent, Jaitley said that gradually India has been moving on a glide path, which will continue. “What are the requirements on the economyIJ How steep is that glide path, you can decide on a year to year basis,” he said in response to a question.
Jaitley also said that the Reserve Bank of India is a mature institution and it knows what to do.
“They know that inflation management and growth both have to be balanced. The RBI has an expertise of its own. They take their decisions accordingly,” said Jaitley, who is here on a week-long visit to the US to attend the annual meeting of the International Monetary Fund and the World Bank.