Govt had sought Rs 13,000 crore additional dividend from RBI: Finance ministry | india news | Hindustan Times
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Govt had sought Rs 13,000 crore additional dividend from RBI: Finance ministry

In August, RBI had paid a dividend of Rs 30,659 crore for the fiscal ended June 2017.

india Updated: Mar 09, 2018 17:09 IST
The government sought additional funds from RBI as per the Malegam Committee’s recommendations.
The government sought additional funds from RBI as per the Malegam Committee’s recommendations.(Reuters File Photo)

The government said on Friday 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 on Thursday 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% of the GDP in the current fiscal as against the budget estimate of 3.2%.

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.