Direct cash transfer can help reduce fiscal deficit: RBI
Describing the government's ambitious direct cash transfer scheme as a 'powerful tool', Reserve Bank Deputy Governor K C Chakrabarty has said the initiative will help reduce fiscal deficit,
Mumbai: Describing the government's ambitious direct cash transfer scheme as a "powerful tool", Reserve Bank Deputy Governor K C Chakrabarty has said the initiative will help reduce fiscal deficit, which in turn will also bring down inflation if implemented well.
"The direct cash transfer scheme will reduce the fiscal deficit, which in turn will facilitate inflation control," Chakrabarty, the senior-most of the four deputy governors at the Mint Road, told PTI in an interview.
The former commercial banker, who recently got a second term for another two years, explained that the scheme will have a positive impact on the inflation front. The efficiency in expenditure will help reduce the fiscal deficit, he added.
Chakrabarty said the programme, which is planned to be introduced in 43 districts starting January 1, will help in curtailing the massive leakages and wastages in the subsidy distribution system. It is learnt that the government can save up to Rs 20,000 crore a year through this as it will plug the porous distribution system that helps middlemen.
The scheme, once nationally rolled out, envisages transferring as much as Rs 32,000 in cash on an average into the bank account of each beneficiary family or a total of Rs 3.2 trillion per annum. While 16 states will be covered by April 1, 2013, the national roll-out is planned for April 1, 2014.
The government plans to include training of all involved in the process like the revenue officials, bankers, etc., before the launch. The financial inclusion drive being carried over through the last three years, complemented with the Aadhar drive, will help fulfil the Know-Your-Customer requirements, and make the transfer scheme a success, Chakrabarty said.
The rate of price rise in the food basket accelerated to 4.94 percent in March from 3.87 percent in the preceding month, as per data released by the NSO
COVID-19 in Maharashtra: 'Tried to discuss oxygen supply with Modi but he was busy with Bengal polls', claims Uddhav Thackeray
Harsh Vardhan said he assured Thackeray of adequate and uninterrupted supply of medical oxygen while Piyush Goyal accused the Maharashtra chief minister of playing 'petty politics'
The court also said that FIR is not an “encyclopedia” that must disclose all the facts and details relating to the offence reported and that courts should not to go into the merits of the allegations when an investigation is in progress