Govt needs clear 'entry and exit plan' on fiscal expansion: Shaktikanta Das

Banks unwilling to take on credit risk in their balance sheets beyond a point, says central bank governor

The Covid-19 pandemic will expand the government’s fiscal deficit beyond 3.5 per cent of India’s gross domestic product (GDP), said Reserve Bank of India (RBI) Governor Shaktikanta Das as he called for a “well calibrated road map” to manage finances.
 

“The 3.5 per cent fiscal deficit target for this year will be very challenging to meet,” Das told news agency Cogencis in an interview.

“It has to be a judicious and balanced call, keeping in mind the need to support the economy on one hand and the sustainable level of fiscal deficit that is consistent with macroeconomic and financial stability.”
 

“There