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No plan to monetise debt for now, GDP may not shrink too severely: DEA Secy

Tarun Bajaj says proposal of a 'bad bank' discussed internally, but no decision taken

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Bajaj also said that based on tax collections so far, India’s economic contraction in FY21 may be less severe than previously anticipated

Arup Roychoudhury New Delhi

3 min read Last Updated : Jul 23 2020 | 9:43 PM IST

The finance ministry has not discussed any proposal to monetise its deficit with the Reserve Bank of India (RBI), Economic Affairs Secretary Tarun Bajaj said on Thursday.

Speaking at an event organised by industry body Ficci, Bajaj said that based on tax collections so far, India’s economic contraction in this fiscal year might be less severe than anticipated and that the proposal of a ‘bad bank’ had been discussed internally, but no decision had been taken.

“Currently, there is no proposal for debt monetisation on the table. Questions on fiscal position and debt monetisation plan should be asked after three-four months,” said

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