Finance Minister P Chidambaram has appealed to the people to moderate the demand for gold which is a huge drain on government's current account. Talking to reporters in New Delhi today, Mr Chidambaram said, if the demand for gold continues to surge, the government may have no choice but to make gold import a little more expensive. He also said that the move is under consideration. Describing the current account deficit, CAD, as a matter of concern, the Finance Minister said it is within government capacity to finance it with the help of foreign direct investment, foreign institutional investors and external commercial borrowings.He expressed confidence that Centre can finance the CAD even if it is slightly higher than the last year without drawing upon foreign exchange reserves. Mr Chidambaram said, the CAD, in the first half of the current financial year stood at 4.6 per cent of GDP and sharp decline in exports and smaller decline in imports leading to widening of trade deficit have been the main contributors to the CAD.
News On AIR | January 2, 2013 1:48 PM
Moderate demand for gold, CAD a matter of concern: Fin Min to people