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  1. Government had sought Rs 13,000 cr additional dividend from RBI, says Finance Ministry

Government had sought Rs 13,000 cr additional dividend from RBI, says Finance Ministry

The government today said it had sought Rs 13,000 crore more from the Reserve Bank over the Rs 30,659 crore surplus fund it transferred earlier.

By: | New Delhi | Published: March 9, 2018 3:08 PM
RBI, finance ministry, Subhash C Garg, Lok Sabha, RBI Act, news on RBI, latest news on RBI 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. (PTI)

The government today said it had sought Rs 13,000 crore more from the Reserve Bank over the Rs 30,659 crore surplus fund it transferred earlier. Economic Affairs Secretary Subhash C Garg had said yesterday that the government was expecting “some more” dividend from the central bank this month. 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 paid in 2015-16.

“The government had sought Rs 13,000 crore in addition to the surplus of Rs 30,659 crore 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.

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