FM Nirmala Sitharaman reviews major macroeconomic developments, financial stability issues

New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday (December 15) reviewed the major macroeconomic developments and Financial Stability issues (global and domestic) with special reference to vulnerability related issues, chairing the 23rd Meeting of the Financial Stability and Development Council (FSDC) through video conference, said an official statement.

The meeting reviewed the major macroeconomic developments and Financial Stability issues (global and domestic) with special reference to vulnerability related issues and noted that the policy measures taken by the government and the financial sector regulatory authorities have ensured faster economic recovery in India as reflected in the reduced contraction of GDP in Q2 of 2020-21. 

"The economy has gained momentum and the path to recovery will be faster than what was predicted earlier. The discussions were held on further measures which may be required to be taken to ensure consistent support of the financial sector for achieving faster real economic growth and achieving the overall macroeconomic targets while continuing to maintain financial stability," said the statement.

The Council also discussed the budget proposals submitted by RBI and other Regulators. It also noted that there is a need to keep a continuous vigil by the government and all regulators on the financial conditions that could expose financial vulnerabilities in the medium and long-term.

It also discussed the challenges involved in the smooth transition of London Interbank Offer Rate (LIBOR) based contracts and noted that a multipronged strategy involving relevant stakeholder institutions and departments is required in this regard.

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The council also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor of RBI and the action taken by members on FSDC decisions earlier.

Notably, the Finance Minister Nirmala Sitharaman on Monday held pre-Budget consultations with top industrialists in the national capital ahead of the forthcoming Union Budget 2021-22.

Sitharaman has concluded a comprehensive review of the Aatma Nirbhar Bharat Package (ANBP) with the Secretaries of various Ministries/Departments, the Ministry of Finance said on Sunday. 

According to the Finance Ministry, the ministries and departments concerned have started implementing the announcements under the three Aatma Nirbhar Bharat Packages. The progress of implementation is being reviewed and monitored regularly.