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Centre likely to get interim dividend from RBI
The government is hopeful to meet its dividend collection target from financial institutions and the RBI for the current financial year 2018-19.
- The government is hopeful to meet its dividend collection target from financial institutions and the RBI 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.
More in the news
- Under the RBI Act, 1934, the central bank is required to pay the government its surplus.
- RBI pay the surplus after making provisions for bad and doubtful debts, depreciation in assets and, contribution to staff and superannuation fund among others.
- In the last financial year 2017-18,RBI 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.
- In the Budget for 2018-19, the government estimated a dividend of Rs 54,817 crore from the RBI, nationalised banks and financial institutions.
- The government has maintained that it will stick to its target of fiscal deficit of 3.3% of GDP, as pick up in disinvestment revenues and higher direct tax collections will aid revenues.
Source
Indian Express.