Mumbai: Reserve Bank of India (RBI) today (Jan 16, 2004) said the fiscal and revenue deficit outlook for the country would be better than Budget estimates and the inflation rate will start falling in the coming days.

Asked about the impact of cut in custom duties and other sops on the financial conditions, RBI governor Y V Reddy said as per the current assessment, the revenue and fiscal situation for 2003-04 would be better than what is estimated in the Budget.

"We had discussions with the Finance Ministry on this issue and the outlook would be better," Reddy said on the sidelines of a function organised by Bombay Management Association to felicitate former RBI governor Bimal Jalan. The inflation, which is currently ruling high, is expected to fall and it should range between four and 4.5 per cent by the end of this fiscal, he said.

"By current assessment, we do not expect any additional borrowings by the Government despite a range of duty cuts announced last week," Reddy added.