Govt seeks at least Rs 23,100 cr interim dividend from RBI before March 31

Narendra Modi-led Central government is seeking at least Rs 23,100 crore interim dividends from the Reserve Bank of India (RBI) before March 31.

RBI have now appointed a panel to look into the issue around the sharing its reserves. (Image: PTI)

New Delhi: In order to meet its fiscal deficit target of 3.3 per cent of the gross domestic product (GDP) for 2018-19, Narendra Modi-led Central government is seeking at least Rs 23,100 crore interim dividends from the Reserve Bank of India (RBI) before March 31. The news comes days after former finance ministry official Shaktikanta Das was appointed as the Governor of RBI, post the resignation of Urijit Patel in December amid tussles over the dividend payout and other economic issues. Reportedly, this transfer of funds could help the Central government in fund generation after a drop in tax collection and widening budget deficit. The government and RBI have now appointed a panel to look into the issue around the sharing of the RBI's reserves. “We are absolutely sure that an interim dividend of more than 300 billion rupees would be paid before March end,” news agency Reuters quoted a ministry official as saying. The funds are crucial to meet the fiscal deficit target of 3.3 per cent of the GDP for the financial year ending in March, as the government's revenue shortfall may be as high as Rs 1 lakh crore, finance ministry officials told the news agency on the condition of anonymity. It is also being said that Finance Minister Arun Jaitley might take a final call on the dividend transfer before presenting his 6th and last Union Budget before the 2019 general elections. Even during the 2017-18 fiscal, RBI transferred Rs 10,000 crore as interim dividend three days before the end of FY18 and government is seeking a similar amount transfer along with pending demand from contingency reserves. However, speaking about the same Das told reporters in New Delhi on Monday that there are lots of correspondence which goes on between the government and the Central bank. “As and when a decision is taken, the Reserve Bank will not delay announcing it,” he added. Even the Economic Affairs Secretary Subhash Chandra Garg had last month stated that the government was seeking more interim dividend from the RBI and that it will stick to its 3.3 per cent fiscal deficit target.