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It's up to banks, RBI to lower rates: Sinha

BUDGET 2001

Finance Minister Yashwant Sinha said on Wednesday he had done his bit to reduce interest rates and it was up to banks to follow his example.

"I have done my bit, it is up to the Reserve Bank of India (RBI) and banks to act on this," he told reporters when asked whether he expected a softening of bank lending rates after his budget announcements.

Earlier, presenting the 2001/02 (April-March) budget, Sinha announced a 100-150 basis point cut in government-set interest rates on small savings schemes.

Sinha declined to estimate economic growth in 2001/02 but said his budget was growth-oriented.

"I will not hazard a guess, I would only like to say that the main feature of this budget is that we are trying to promote growth. All the concessions that I have given are meant to increase growth and take the economy forward," he said.

Sinha's budget cut taxes and streamlined the taxation structure.

India's GDP is estimated to grow by six percent in 2000/01, down from 6.4 percent a year earlier.

Budget 2001
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