While it can be argued that separation of the two functions may put pressure on the Government to reduce its borrowing requirements, on balance it may be better to coordinate the two functions for the present, while vigorously pursuing with Government a reduction in Government borrowings to more sustainable levels and developing the Government Securities market further.
It has been concluded by us that while status quo could continue, the issue will have to be reviewed from time to time. Perhaps, after some more progress in fiscal consolidation and after the adoption of Fiscal Responsibility Act, the issue could be revisited appropriately.