The Finance Ministry hopes that the National Investment Board and new banking licences will soon see the light. At the same time, it has reassured to keep the fiscal deficit within the revised target of 5.3 per cent.
Economic Affairs Secretary, Arvind Mayaram, said that the proposal for setting up NIB is likely to be placed before the Cabinet within next 2-3 weeks.
Talking to reporters on the sidelines of the World Economic Forum on India, he also hoped that new banking licences will be awarded soon.
The National Investment Board (NIB), as proposed by the Finance Ministry, envisages an Empowered Standing Committee of the Cabinet under the Chairmanship of the Prime Minister.
The proposed board, once approved, aims to facilitate and ensure time-bound grant of various licences, permissions and approval as a mechanism. This will be triggered in case of the failure of the concerned ministries/department to act in time to take decisions.
The Finance Ministry is trying to find a way out for granting new banking licences even when the Banking Law (Amendment) Bill is pending in Parliament. The Reserve Bank of India has said that it is waiting for the passage of this bill before giving new licences.
Fiscal deficit
Mayaram also said that he was confident of achieving the Rs 30,000 crore disinvestment target set for this fiscal. With or without disinvestment, fiscal deficit will not cross the target of 5.3 per cent at the end of the fiscal, he added.
The Government's plans for additional borrowings are also likely to be firmed up in January or February, Mayaram confirmed, while saying, “We will assess our needs for borrowing in January-February.’’
The Government is reportedly likely to borrow as much as Rs 25,000 crore to be able to check the fiscal deficit at 5.3 per cent of GDP, which was revised from the budgeted target of 5.1 per cent.
Referring to the upcoming 2G spectrum auction, Mayaram said that the Government will ease the current External Commercial Borrowings cap, which will help reduce the costs for telecom companies and enable them to pay the spectrum fee in one lumpsum at lower interest rates, instead of in instalments at higher rates.