Govt had sought Rs 130 billion additional dividend from RBI, says FinMin

New Delhi, Mar 9: The government on Friday said it had sought Rs 130 billion more from the Reserve Bank over the Rs 306.59 billion surplus fund it transferred earlier. Economic Affairs Secretary Subhash C Garg had said on Thursday that the government was expecting “some more” dividend from the central bank this month.
In August, RBI had paid a dividend of Rs 306.59 billion for the fiscal ended June 2017. It was less than half the Rs 658.76 billion paid in 2015-16.
“The government had sought Rs 130 billion in addition to the surplus of Rs 306.59 billion transferred by RBI,” Minister of State for Finance Pon Radhakrishnan said in a written reply to the Lok Sabha.
He said additional fund was sought as per the Malegam Committee’s recommendations of transfer of the RBI’s entire surplus to the government.
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.
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.