Reserve Bank Of India Governor, D. Subbarao, said that the newly elected UPA led central government may have to take bold decisions to maintain adequate growth rate of economy, announcing more stimulus packages for the industry.

However, it would further widen the already expanding fiscal deficit of the country. Economist and market analysts believe that government's borrowing are expected to cross 3.6 trillion rupees by the end of March 2010.

Mr Subbarao added, "Given the still soft economy, the pressure to provide more stimuli will persist. While this may help in the very short-term, the sustainability of economic recovery requires returning to responsible fiscal consolidation."

The government had announced a special stimulus package in December last year, paying special attention toward infrastructure sector besides cutting factory levies and increasing the foreign investment limit in corporate bonds. RBI expects economic growth rate of around 6 per cent in the current fiscal against around 7% growth for the last financial year.

Mr. Subbarao said, "While the Reserve Bank will continue to support liquidity in the economy, it will have to ensure that as economic growth gathers momentum, excess liquidity is rolled back in an orderly manner."