Business

FM Arun Jaitley Assures Of Maintaining Current Account Deficit

JAVED SAIFI | 0
2133
| September 15 , 2018 , 13:49 IST

In a meeting chaired by Prime Minister Narendra Modi and Finance Minister Arun Jaitley on Friday, the government has decided to cut down the non-essential imports, increase exports, removal of withholding tax on Masala bonds and relaxation for Foreign Portfolio Investments (FPIs) over the issue of mounting Current Account Deficit (CAD).

In a media briefing, Jaitley Said, "The aim of these five immediate decisions is to attract more foreign currency to India as we try to control the current account deficit."

"The government and Finance Ministry's top priority is to maintain the fiscal deficit and we are trying to maintain it and we are confident we will be able to maintain it," he added.

The meeting was also attended by the Reserve Bank of India Governor Urjit Patel, senior officers from the Prime Minister's Office (PMO) and officers from Finance Ministry.

Also Read: Rahul Gandhi Demands Finance Minister Arun Jaitley Step Down Over Alleged Meeting With Vijay Mallya

The country's fiscal deficit in the first four months of 2018-19 at Rs 5.40 lakh crore has already touched 86.5 per cent of the full year's target of Rs 6.24 lakh crore.

India's current account deficit widened to $15.8 billion, about 2.4 per cent of the country's GDP in the first quarter of this fiscal as against $15 billion in the year-ago quarter.

These 5 CAD measures would definitely have a meaningful impact to the tune of $8-10 billion, top Finance Ministry official said.

(With Inputs From IANS)