With an efforts to reduce dependence on the domestic market for bridging fiscal deficit, the Reserve Bank of India's (RBI's) Governor Shaktikanta Das has said the central bank will discuss the issuance of overseas sovereign bonds with the government. The RBI issues bonds on behalf of the government as part of the resource mobilisation exercise to fund gap between revenue and expenditure.
The RBI Governor further hailed the government's move to slash fiscal deficit target, saying that it will help improve investment by the private sector as crowding out impact will be less.
Besides, Das noted that there is fiscal glide path which the government is maintaining in the last five years. He said that the government started with a fiscal deficit number of 4.5 per cent and now, it has gone down to 3.3 per cent. So, overall, it will be good for microeconomic situation.