Government Eyes Interim Dividend Worth Rs 30,000 Crore From RBI

The BJP government may seek Rs 30000 crore as Interim dividend from Reserve Bank of India to meet its fiscal target of 3.3 per cent in financial year 2019-20

“If required, the government may request the Reserve Bank of India for an interim dividend of Rs 25,000-30,000 crore during the current fiscal,” an official, requesting anonymity told PTI.

Apart from the RBI dividend, the other options on the table to meet the fiscal deficit target include disinvestment and higher utilisation of National Small Saving Fund (NSSF).

Last month, Governor Shaktikanta Das-led RBI central board gave its nod for transferring to the government a sum of ₹1,76,051 crore, comprising ₹1,23,414 crore of surplus for the year 2018-19 and ₹52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF).

Out of the net income of ₹1,23,414 crore for the year 2018-19, RBI had already transferred ₹28,000 crores to the government as interim dividend in March 2019.

The government is dealing with two things article at the same time–the pressure to maintain the fiscal deficit, and the continuance of schemes announced by the Modi government to boost the economy which hit a six-year low of 5 per cent in the first quarter of the current financial year.

The corporate tax cut itself is said to increase the tax burden on the government to the tune of Rs 1.45 lakh crore. If the removal of long-term and short term capital gains for foreign portfolios is to be considered, then the burden on the treasury increases by an additional Rs 1,400 cr.

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