With a word of advice for the government, Viral Acharya leaves RBI

Reserve Bank of India (RBI) Deputy Governor Viral Acharya left the central bank on Tuesday after a customary farewell hosted by Governor Shaktikanta Das. Just just last week, the feisty deputy governor had a cautionary word or two for the government’s borrowing binge.

In a speech delivered last week in IIM Ahmedabad and IIT Mumbai, the deputy governor rued that the heavy government borrowing is crowding out private players, but not necessarily for productive purposes. It is important that the government sticks to the discipline set by the Fiscal Responsibility and Budgetary Management Act (FRBM), which says that fiscal deficit