Curbs on Gold Import would incentivise smuggling - RBI Guv
RESERVE bank of India Governor yesterday said, "I would have been happier if we had the current account deficit (CAD) that we have without significant curbs on anything, including gold. I think that is our aim. I think, we should aim to have a sustainable CAD without any distortions, like removing incentives for smuggling of gold."
The Governor added, "My discussions with government officials suggest that they are very firm on achieving it (fiscal deficit target). That will mean, given where we are, there will be a certain amount of expenditure reduction in the fourth quarter. That will have some adverse growth effect, of course. We expect expenditure reduction in the fourth quarter. My reading is there is always a certain amount of rollover."
Very optimistic Governor, but Revenue realisation is going to be far short of target.