With Shaktikanta Das at RBI, Modi government now eyes interim dividend

By: | Updated: December 18, 2018 11:26 AM

In the Budget for the financial year 2018-19, the government estimated a dividend of Rs 54,817 crore from the Reserve Bank of India, nationalised banks and financial institutions.

rbi, reserve bank of india, central bank of india, shashikant das, business news in hindiRBI follows July-June financial year, while the government’s fiscal year runs from April to March.

The Narendra Modi-led government is hopeful to meet its dividend collection target from financial institutions and the Reserve Bank of India for the current financial year 2018-19. The Ministry of Finance is expected to seek interim dividend from the central bank by March-end 2019, The Indian Express reported citing sources. The ministry is hopeful that the RBI under the newly-appointed Governor Shaktikanta Das will be open to its demand, the report added.

Former bureaucrat Shaktikanta Das was appointed last week as new RBI Governor for a period of three years after Urjit Patel resigned from the position with immediate effect citing “personal reasons”.

In the last financial year 2017-18, the apex bank had transferred a surplus of Rs 50,000 crore to the government, which included an interim transfer of Rs 10,000 crore in the previous fiscal, taking the effective dividend for the current financial year to Rs 40,000 crore. While RBI follows July-June financial year, the government’s fiscal year runs from April to March.

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The government, in the Budget for the financial year 2018-19, estimated a dividend of Rs 54,817 crore from the central bank, nationalised banks and financial institutions. As per Budget documents, the dividend from public sector enterprises is pegged at Rs 52,494.71 crore. Meanwhile, the government has also maintained that it will stick to the fiscal deficit target of 3.3% of GDP, as pick up in higher direct tax collections and disinvestment revenues will aid revenues.

For April-October period, the government’s fiscal deficit stood at Rs 6.48 lakh crore or 103.9% of the full year target of Rs 6.24 lakh crore, on account of moderated revenue collections and flat government spending, the data from the Comptroller General of Accounts showed.

Recently, Principal Economic Adviser in the Finance Ministry, Sanjeev Sanyal, told the newspaper that the government hopes GST collections and disinvestment to gather pace, along with the economy.

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