North India Statesman
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Mumbai: It is estimated that the government will get a dividend of Rs 2 lakh crore from the Reserve Bank of India (RBI) in the current financial year. In the last financial year, the Reserve Bank had paid a record Rs 2.11 lakh crore to the government. This figure was 140 percent more than the financial year 2022-23.
In addition to the additional income from investment income, the Reserve Bank transfers some of the money saved from currency printing to the government, in addition to the increase in valuation of dollar holdings. Sources also said that the recommendations of the Bimal Jalan Committee are kept in mind while transferring the amount.
As per the recommendation of Jalan Committee, RBI will have to maintain 5.50 to 6.50 per cent of its balance sheet to meet the contingency requirement. This amount has to be maintained to meet any situation arising out of risks related to depreciation of securities or exchange rate policy etc.
This potential dividend will be helpful for the government in view of the possible decline in tax revenues amid weak consumer demand. In the current financial year, the government has not been able to make as much progress as expected in its disinvestment programme. The pace of property sales is slow due to Lok Sabha elections.
An analyst said getting more funds from the Reserve Bank will not only help the government limit the fiscal deficit but will also provide more money for capital expenditure at the higher value of the dollar against the rupee in the current financial year. This year is also going to be beneficial. To stop the fall of rupee against dollar, the Reserve Bank has sold dollars at a higher price.
In September last year, the country’s foreign exchange reserves had reached a record level of $ 705 billion. It is also estimated that the Reserve Bank will earn Rs 1.85 trillion through foreign exchange transactions in the current financial year.
