. ( 7. 5 ) there is now general agreement in the country about the importance of fiscal consolidation roadmap both at national and sub - national levels. while adhering to fiscal deficit targets and debt to gdp ratios, it is equally important to undertake robust expenditure planning based on a ‘ commonly agreed expenditure code ’ to address the socio - economic challenges without diluting the goals of fiscal consolidation. 8. these are some thoughts which come to my mind while participating in this event today. steps like these will go a long way in strengthening fiscal federalism and overall fiscal robustness of our economy. i am sure the book authored by dr. y. v. reddy and shri g. r. reddy will generate substantive debate and contribute to our understanding of issues connected with fiscal federalism. i congratulate dr. y. v. reddy and shri g. r. reddy on their new book and thank them and the organisers of today ’ s event for giving me opportunity to be present here. 2 / 2 bis central bankers'speeches

shaktikanta das : some thoughts on fiscal federalism speech by mr shaktikanta das, governor of the reserve bank of india, at the launch of the book " indian fiscal federalism ", mumbai, 19 march 2019. * * * i am honoured to be invited for the launch of the book “ indian fiscal federalism ” authored by dr. y. v. reddy and shri g. r. reddy. this is the latest in a prolific body of work that draws from dr. reddy ’ s hands - on experience with the indian economy and public policy. these insightful expositions are interwoven with glimpses of dr. reddy ’ s professional life and his ‘ insider ’ views. 2. as governor of the reserve bank of india during 2003 – 2008, after his stint as deputy governor during 1996 – 2002, dr. reddy ’ s journey was studded with many milestones. his tenure as governor can be best characterised by the words he used on assuming office in september 2003 to describe what his approach would be. he had said “ continuity and change will be mixed together appropriately. ” of course, it will be remiss of me if i do not to mention the response of dr. bimal jalan, the outgoing governor, who said “ dr. reddy will change whatever i did and will continue where he left off [ as deputy governor ]. ” 3. for a central bank, proactive action is of immense importance. when risks were brewing in the pre - 2008 period, dr. reddy sensed them pre - emptively. drawing from his speeches, the word ‘ overheating ’ entered the lexicon of monetary policy in india. during the build - up of financial excesses in advanced economies with possible knock - on effects on bystanders like india, he resolutely set about preparing india ’ s defences – building investment fluctuation reserves in the banking system ; recalibrating risk weights for vulnerable asset classes ; and setting prudential limits on inter - bank liabilities. in short, when the world was behaving in a pro - cyclical manner, dr. reddy had turned counter - cyclical ahead of the curve. as events later showed, these bulwarks became critical in protecting the indian economy from the ravages of the global financial crisis of 2008 – 09. 4. i have been an avid follower of dr. reddy ’ s work. having worked for several years on fiscal and economic