In June, while retail inflation slipped to 30-month low of 7.31 per cent, the wholesale price index dropped to four-month low of 5.43 per cent.

On disinvestment programme, Jaitley said the government has already provided the target for the current fiscal and it is progressing as per schedule.

Meanwhile, replying to a question on retail inflation targets for January 2015 and 2016, Reserve Bank of India (RBI) Governor Raghuram Rajan, who was present at the press meet, said "as of now, we think the policy is on target. We (RBI's policy measures) are contingent on the data coming in".

RBI is targeting a retail inflation (CPI) of 8 per cent in January 2015 and 6 per cent in the following January.

Later, RBI in a statement said that while addressing the board, the Finance Minister stressed that the policy regime was being geared to attain higher growth, lower inflation and sustainable external balance in the backdrop of sub-five per cent growth in last two fiscals.

The RBI Board reviewed the current economic situation, global and domestic challenges and policy responses.

Jaitley also told the board that tax incentives have been enhanced to promote household savings and measures are being taken accelerate credit flows to infrastructure and promote agriculture growth.

The Board was also told that steps are being taken to encourage investment in the country.

The Finance Minister also discussed financial inclusion programme of the government, which is expected to be unveiled by Prime Minister Narendra Modi in his Independence Day speech.