Centre may get around ₹1 lakh crore in RBI dividend
Reserve Bank of India (RBI) suggest that it may transfer a higher dividend — possibly in the region of ₹1 lakh crore — to the government than last year, giving a potential boost to New Delhi's finances.
Last week, the RBI announced a steep cut in the government's borrowing through Treasury Bills, reducing the amount of funds that the Centre would have garnered through these short-term instruments by ₹60,000 crore.
The central bank also took some measures to ensure greater success of an upcoming operation where the government plans to prematurely pay back ₹60,000 crore of earlier borrowings.
Both these actions, which seek to utilise government funds that are currently sitting idle due to election-related constraints on spending, also hint that the Centre's finances may soon be handsomely replenished.
The RBI, which is the government's debt manager, is likely to announce the transfer of its surplus funds to the government in late May.
«We expect the RBI to transfer a surplus of INR 1,000 billion (₹1 lakh crore) to the government in FY25… while there are many moving parts in the RBI dividend calculation, our assessment shows a likely repeat of a strong dividend number,» Union Bank of India's chief economic advisor, Kanika Pasricha, recently said in a research note.
Earnings from Foreign Assets
Calculations conducted by analysts based on public information about the RBI's balance sheet make a case for the central bank to surpass the surplus transfer of ₹87,416 crore that was given to the Centre last year.
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