by Harish Gupta, National Editor, Lokmat Group
PMO to decide on how to use RBI's 1.76 Lakh Crore Wind-fall
Harish Gupta
New Delhi, Sep. 5
Worried over fall in revenue collections due to economic slowdown, the Prime Minister’s Office (PMO) has pressed the pause button over utilisation of Rs 1.76 lakh crores wind-fall gain in its kitty.
Highly placed sources say that its not the Finance Ministry but the PMO that will take a final call on Rs 1.76 lakh crores received from the Reserve Bank of India (RBI) last week.
While the Opposition parties have alleged that the government will spend this money on meeting its rising fiscal deficit and unmanageable economic slowdown, the Finance Ministry has maintained a studied silence on the issue.
The RBI transferred a record dividend of Rs 1.76 lakh crores out of its Rs 10 lakh crores surplus funds on the recommendations of the Jalan committee report.
Sources aware of the goings-on in the government said that top officials of the finance ministry may shortly meet mandarins in the PMO soon to work out the modalities. The process has somewhat been delayed as the PMO is undergoing internal changes. With Principal Secretary Nripendra Mishra demitting office within the next one week and other six senior officials arriving in the PMO, things are settling down.
There is a thinking that the funds be put to use into stimulating the sagging economy and infrastructure spending rather than doling out bonanza to handful of sectors.
Union Finance Minister Nirmala Sitharaman said recently that the government was yet to decide how to utilise Rs 1.76 lakh crore. “I can’t talk about how to utilise it now. We will take a call and then let you know,” she had said while replying to a question at press conference in Pune. She held a marathon meeting with the Industries representatives yesterday and assured them corrective steps are underway.
The PMO's new team is busy preparing a blue print for reviving the economy and bridge the revenue shortfall and cut down on borrowings.
Ends
