All options open to govt to monetise deficit under RBI guidance: N K Singh

Fifteenth Finance Commission Chairman N K Singh on Friday said all options should be open to the central government in discussions with the RBI to monetise fiscal deficit to fund the additional expenditure arising due to the coronavirus pandemic.

"We need not foreclose any option," Singh said when asked about whether the government should go for monetisation of deficit.

He said all options should be open to the sovereign in consultation with the Reserve Bank of India (RBI).

The Rs 20-trillion economic package, which includes government measures and RBI liquidity, according to experts, entailed less than 10 per cent cash