Govt may use its gold reserves to reduce CAD, hints Sharma

[parijataka]

1991 redux ?

Govt may use its gold reserves to reduce CAD, hints Sharma

New Delhi: Government may use a portion of the country's gold reserves to reduce India's widening current deficit, Union Commerce and Industry Minister Anand Sharma has hinted.

The Commerce Minister said that only 500 tonnes of gold will be sufficient to trim down India's current account deficit.

India's CAD -- the gap between inflow and outgo of foreign exchange -- widened to a record high of USD 88 billion or 4.8 percent of the GDP for the fiscal ended March 31, from USD 78.2 billion in 2011-2012, about 4.2 percent of the gross domestic product.

India's wide current-account deficit has been pushing the rupee lower. The rupee today breached the 66-mark against the dollar for the first time in history and quoted at 66.07 Vs dollar.

 

[arnabmit]

This is the same as what Laloo did with railways... sold off lots of Railway land to show Railway is doing profit.

 

[maomao]

Food Security Bill is in line to win elections, CAD will balloon like anything....economy will be sent for a toss by con-gress on two accounts 1) Ruthless Loot of Billions and 2) Giving out dope to the masses in the form of subsidies, inducements and reservation - inturn rendering these groups useless for any future use. Nehru did the same covertly, now con-gress is doing it overtly.

P.S: No hell has broken lose in the paid media!