Budget unlikely to have much inflationary impact: Das

New Delhi: RBI Governor Shaktikanta Das on Saturday said the budget proposals will not have much inflationary impact as the government has by and large remained within the fiscal deficit roadmap set under the FRBM Act.

The Union Budget earlier this month raised the fiscal deficit target to 3.8 per cent of the GDP for 2019-20, from the 3.3 per cent pegged earlier, due to revenue shortage.

“The direct inflationary impact of any budget is fiscal deficit number, when borrowing goes up, but the government has adhered to the principle of fiscal prudence. The ‘escape clause’ under FRBM Act, the deficit number in the current year as well as the next year are very much within the parameters set as per FRBM committee recommendations,” Das said.

He was talking to reporters after the customary address of the finance minister to the central board of RBI post budget.