MINISTER OF STATE IN THE MINISTRY OF FINANCE ( SHRI BALASAHEB VIKHE PATIL)
(a) & (b) The Reserve Bank of India in its Annual Monetary and
Credit Policy Statement released on April 19, 2001 had projected
expansion in money supply (M3) for 2001-02 at about 14.5 per cent.
This was based on the expected growth rate of real Gross Domestic
Product (GDP) at 6.0 to 6.5 per cent with inflation remaining
within 5.0 per cent. This order of growth in M3 was expected
to adequately meet the credit needs of the economy. During the
financial year 2001-02, money supply increased by 14.0 per cent.
(c) During 2001-02, the net market borrowing of the Central
Government was Rs.92,302 crore, higher by Rs.822 crore as
compared with the revised estimate of Rs.91,480 crore.
(d) Does not arise.
(e) RBI provides standing liquidity facilities by way of
Export Credit Refinance (ECR) and Collateralised Lending
Facility (CLF) to eligible banks. The limits available to
banks under these two facilities together have increased
from Rs.7,849 crore as on March 23, 2001 to Rs.9,743 crore
as on March 22, 2002. Thus, there was no reduction in the
standing facilities available to banks.
(f) The policy of the Reserve Bank and the measures
taken by the Government had a favourable impact on the
economy. There has been a steady increase in the growth
of GDP from 4.4 per cent in the first quarter to 5.3 per cent
and 6.3 per cent in the second and third quarters of 2001-02
respectively. Rate of inflation, as measured by wholesale
price index on a point to point basis, remained subdued
at 1.38 per cent as of March 29, 2002.
