With respect to the proposals advanced to make the debt criterion operational, the Commission’s suggestion of allowing excessive deficit procedures for insufficient debt reduction (vis-à-vis an annual 1/20 reduction of the excess over the 60 per cent standard for  5  4  See Franco and Zotteri (2010).
If capital inflows remain strong, the Reserve Bank must take care to see that the resultant reserve money expansion after taking into account the net RBI credit to the Central Government does not exceed a level that is consistent with the expansion in money supply justified by the growth of the real sector. 9.