Budget 2020: FinMin likely to push for Rs 25,000-Rs 30,000 cr interim dividend from RBI, says report
New Delhi, Jan 22: The Finance Ministry is likely to push for Rs 25,000-30,000 crore interim dividend from central bank RBI, for the third time in a row,, according to an NDTV report quoting IANS. The report noted that with the interim dividend from the RBI, the Centre aims to put a check to the 3.3 percent fiscal deficit target slippage.
Finance Minister Nirmala Sitharaman will meet RBI Governor Shaktikanta Das at the post-Budget Vision customary meeting and may take up this issue.
Finance Minister Nirmala Sitharaman, in last year's July Budget, had lowered the fiscal deficit target to 3.3 percent of the GDP for FY20.
In the past RBI has paid a total Rs 38,000 crore as an interim dividend (Rs 28,000 crore in FY19 and Rs 10,000 crore in FY18).
The government has a Budget estimate of Rs 90,000 crore dividend from RBI in FY20. RBI follows a fiscal of July-June.
The Reserve Bank follows July-June financial year and usually distributes the dividend in August after annual accounts are finalised and interim dividends if any, they are given around February to the government.
For 2018-19 (July-June), the RBI transferred a total of Rs 1.76 trillion to the central government, including a one-time transfer of Rs 52,637 crore which was deemed as excess reserves and comprising Rs 1,23,414 crore of surplus for the year 2018-19.
The government is fighting a six-year low growth, subdued demand, and consumption leading to projections of 5 percent growth in current fiscal which is an 11-year drop.
On Monday, the International Monetary Fund (IMF) slashed India's FY20 growth forecast to 4.8 percent, besides trimming global outlook and said India's slow growth is dragging down the world economy.
The Finance Ministry might seek the interim dividend from the RBI to meet some of the financial pressure due to the low revenue generation from taxes and disinvestment and slowdown, said the sources.
The Union Budget 2019-20 had pegged dividends or surplus of the RBI, nationalised banks and financial institutions at Rs 1.06 lakh crore up from Rs 74,140.37 crore realised in the previous fiscal.