Kolkata, Dec 8 : RBI governor D Subbarao today said there is need to raise taxes and compress expenditure by the West Bengal government to improve its financial health. Asked to comment on the state's sagging financial health, Subbarao said, "there is a need to correct the fiscal situation generally by raising taxes and compress expenditure." He said that the quality of fiscal adjustment was important. Undesired expenditure should be cut more than desired expenditure. Subbarao who convened a special SLBC meeting with the state government and banks here said that the banks had told that the state's CD ratio would improve only when large corporate investment were made. Issues like increasing credit linkages to more SHGs and more distribution of kisan credit cards were also on the agenda. Subbarao said that state finance minister Amit Mitra had said that the state government would make efforts to release Rs 85 crore for recapitalisation of three RRBs in West Bengal.
IBN Live
