Government expecting "some more" dividend from RBI in March: Secretary
The government is expecting \"some more\" dividend from the Reserve Bank this month, Department of Economic Affairs secretary Subhash C Garg said here today.
MUMBAI: The government is expecting "some more" dividend from the Reserve Bank this month, Department of Economic Affairs secretary Subhash C Garg said here today.
In August, RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017. It was less than half the Rs 65,876 crore it had paid in 2015-16.
Since November last year, sources said, the finance ministry has been in discussions with the central bank to transfer the surplus to the exchequer.
The government is hard pressed to bridge the fiscal deficit, which is expected to widen to 3.5 per cent of the GDP in the current fiscal as against the budget estimate of 3.2 per cent.
"We already have (about) Rs 30,000 crore (for 2016-17) transferred by RBI to government this (fiscal) year. There is some more which is expected this month itself," Garg told reporters on the sidelines of an IVCA event here today.
He declined however to disclose any details of the dividend, including the year for which RBI will be giving the amount to the government.
"I wouldn't be getting into the specific colour and kind of dividend," Garg said.
As per the sources, the government may get additional dividend of Rs 10,000 crore from Reserve Bank of India (RBI) this month.
Under the RBI Act, 1934, the central bank is required to pay the government its surplus after making provisions for bad and doubtful debts, depreciation in assets and, contribution to staff and superannuation fund among others.