RBI Guv: Fiscal Discipline Key to Growth

Mumbai, Sep 18 (PTI) RBI Governor Sanjay Malhotra on Thursday emphasised on the importance of fiscal discipline for promoting economic growth and prosperity.

Addressing the 35th Conference of State Finance Secretaries here, the Governor also stressed the need for the states to focus on improving the quality of expenditure and ensuring prudence in off-budget borrowings.

The theme of the Conference was 'Journey towards Economic Prosperity through the Path of Fiscal Consolidation', the Reserve Bank of India (RBI) said in a release.

Malhotra also underscored the importance of active coordination between the states and the Reserve Bank for effective implementation of various initiatives being undertaken in the areas of currency management, financial inclusion, and Unified Lending Interface, it added.

The meeting reviewed, inter alia, cash management and market borrowings by the states and issues relating to fiscal consolidation.

The conference was attended by Secretary, Department of Expenditure (Ministry of Finance) and finance secretaries of 28 States and two Union Territories. Officials from the Ministry of Finance, Controller General of Accounts and the Comptroller and Auditor General of India also participated.