Political Capital - RBI Not Responsible For Fiscal Problems

Published on Sep 30, 2013

The rupee fall is a consequence of fiscal deficit problems and not the cause, Senior BJP Leader Arun Shourie says. Subsidy growth and populist schemes have bloated the deficit, he says, pointing out that monetary policy is not the instrument to curb food inflation. He says that the government has constantly passed the buck and blamed the RBI. The criticism of D. Subbarao was unjustified and orchestrated, he says, adding that the investment climate was not vitiated due to RBI's policy stance.