FM Jaitley hopeful of fiscal situation becoming comfortable in next financial year

Sujana Chowdary

Sujana Chowdary Sujana Chowdary

Brushing aside any immediate need to worry about rising global oil prices, Jaitley said an assessment should not be made based on hypothetical situation concerning crude prices as the trend in the last three days has been the opposite (with prices falling again). Addressing the media after a customary post-Budget address by Finance Minister to the RBI's board, Patel said the correction in the last few days underscores that market indices can move pretty quickly.

"I see the next year to be reasonably more comfortable as far as revenues are concerned and therefore at this stage I can't say that there will be any slippage. I am sure we will be able to maintain the target quite well", Jaitley told a joint news conference with Reserve Bank of India Governor Urjit Patel in New Delhi. Touching upon the impact of oil prices, RBI Governor Urjit Patel said that while we need to be prepared for oil price movements on the either side, it is hard to predict anything. In June a year ago, Patel pointed out, it was widely predicted that oil prices would not touch $40-$45 per barrel, and some of the advice based on that "turned out to be wrong in a major way". "However, as financial market regulators, both RBI and Sebi need to be cognizant of the risk going forward", Patel said. On Saturday, Patel said that in recent months banks were doing a better job at passing on the benefits of lower policy rates to borrowers.

Pointing out to FM Jaitley's budget announcement of persuading corporates to raise funds through the bond market, Tyagi said the rules for mandatory 25 percent fund-raising by listed companies through this route would be out by September. "I had a meeting with the Sebi Board and one of the factors that stood out in the presentation was that there is also now an increased reliance on the bonds market", the finance minister said. "How to implement this and what impact it can have on farmers, commodity prices and export competitiveness, all these issues were discussed academically". Besides Jaitley, the Sebi board meeting was attended by Minister of State for Finance Pon Radhakrishnan, Finance Secretary Hasmukh Adhia, Chief Economic Adviser Arvind Subramanian, Corporate Affairs Secretary Injeti Srinivas, Sebi's board members G Mahalingam, Arun P Sathe and Madhabi Puri Buch and other senior officials of the regulator.

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