Duvvuri Subbarao said Jaitley decision to relax on fiscal consolidation to give himself more room to spend is a questionable, and by far the most disappointing decision.
Heated exchanges between treasury and opposition benches took place in the Lok Sabha.
The RBI flagged risks from govt decision to delay fiscal consolidation plan, warning that "significant deviations" and slippages will make meeting inflation challenging.
The RBI kept its key repo rate at 6 pc, and also retained its “neutral” stance, seeking to support economic growth even as inflation has accelerated to a 17-month high.
The Reserve Bank opted for the widely expected status quo in key rates citing inflation concerns and flagged risks from wider fiscal deficit.