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Revenue situation much better: RBI

Reserve Bank of India deputy governor Rakesh Mohan said on Tuesday that the revenue situation in the country now is "much better" and the manufacturing sector has shown signs of growth in the current fiscal.

"The fact that an auction was cancelled one or two weeks back shows that the revenue situation is much better," Mohan told newspersons after addressing the 2002 Asian Venture Forum in Mumbai.

The Centre, on November 14, had decided not to raise Rs 5,000 crore (Rs 50 billion) through the scheduled auction during November 18-23 in view of the comfortable liquidity position.

Referring to the Fitch Ratings statement that India's local currency rating seems to be under threat due to its fiscal deficit, he said, "everyone is clearly concerned about the fiscal deficit at the Centre and state level. This has been indicated in the Budget and also in various policy statements of RBI".

Asked if the Centre's fiscal deficit and borrowings for 2002-03 would be lower, the deputy governor said "we still have five months to go".

Referring to the manufacturing sector, he said it has already shown a growth of six per cent in the first half and there seems to be some upturn happening.

On the appreciating value of the rupee vis-à-vis international currencies, Mohan said value of the currency was market determined and the apex bank was always concerned about maintaining stability and confidence in the market. "We do not want volatility in the exchange market and have to ensure access of forex to people," he added.

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