FM Emphasizes the Need for Financial Stability and for Coordinated Approach by all the Financial Sector Regulators to Achieve the Same

Eleventh Meeting of the Financial Stability and Development Council (FSDC) held under the Chairmanship of the Union Finance Minister

The Finance Minister Shri Arun Jaitley emphasized the need for financial stability and the need for coordinated approach by all the Financial Sector Regulators to achieve the same. He referred to the high political expectations from the new government and the opportunity now available for resolving long-pending problems facing the economy. Shri Jaitley cautioned against slackening the vigil in the area of fiscal consolidation. The Finance Minister also stressed upon the need to improve the business climate and reducing the cost of doing business as important means for revival of the investment cycle. The Finance Minister Shri Jaitley was speaking at the Eleventh Meeting of the Financial Stability and Development Council (FSDC).

Finance Secretary Dr. Mayaram gave an overview of the state of macro-economy. The Council noted that recently there is improvement in vital macroeconomic parameters such as decline in fiscal deficit, reduction in the Current Account Deficit (CAD), increase in forex reserves and relative stability of exchange rate. However, there is a long way to go in terms of reviving economic growth, controlling inflation especially food inflation, keeping deficit under control, addressing infrastructure bottlenecks and finding ways to absorb the growing workforce in a productive and meaningful manner. There is also a need to continue to be in a state of preparedness for managing any external sector vulnerabilities.

In this meeting, all financial sector regulators presented their suggestions regarding the forthcoming Budget 2014-15, as also their ideas on next generation financial reforms.

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