The government will not be able to ensure sustainable growth and control inflation unless the issue of soaring subsidy bill is addressed, Reserve Bank of India (RBI) Deputy Governor Subir Gokarn said.

Speaking at the South Indian Chamber of Commerce & Industry's 102nd annual general meeting, Mr. Gokarn said subsidy bill was the biggest single burden on government finances, and not dealing with subsidies would provide the country with only imperfect and incomplete solutions.

Urging the government to get rid of subsidy bill, Mr. Gokarn said, "No solution will effectively work unless the issue of subsidy bill is addressed, because it is by far the largest single burden on government finances."

He pointed out that a low fiscal deficit would feed into high growth process and that that the rising subsidy bill was shifting the country's resources from investment to consumption.

He stressed that RBI would keep diverse developments of the past few months in mind while publishing its half-yearly review by the end of October.

Mr. Gokarn welcomed the government's policy changes announced in the past weeks, saying these policies would address some of the growth and inflation related risks.