The Reserve Bank of India and the finance ministry should work in harmony, former prime minister Manmohan Singh said on Saturday, against the backdrop of reports about differences between the two.
“RBI has been a great institution. Having been the governor of the RBI, and also having been the finance minister, I would like the two to work in harmony with each other,” Singh said when asked about the reported rift between the ministry and the RBI.
- Congress plenary session: Rahul admits last UPA govt failed expectations; Manmohan, Chidambaram train guns on NDA govt for messing up economy
- RBI to have additional instrument for liquidity management
- Fiscal situation would be comfortable next year: Arun Jaitley after meeting RBI board
- Pakistan debate in Gujarat: Manmohan Singh asks PM Modi to apologise, Jaitley hits back
- Electoral bonds: Govt, RBI finalising norms; unveiling likely by year-end
- On debt authority, govt yields to Reserve Bank
Singh, who was speaking on the sidelines of the GK Reddy Memorial National Award function to confer an award posthumously on veteran journalist Vinod Mehta, however, said that the finance minister (Arun Jaitley) had denied such reports.
There have been reports about differences between the RBI and the finance ministry on various issues, including the structure of a new agency that was to manage public debt and setting of policy rates.
Singh also favoured referring the GST Bill that was cleared by the Lok Sabha on Wednesday to the select committee because of the new elements in it, even as he said his party was not opposed to the Bill.
“We are not opposed to it. But there are new elements in the new bill, which need to be looked at. So it should be sent to the select committee,” Singh said.
“They have brought certain changes that are not good for the economy,” he added.