Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government
The HinduThe decision by the Reserve Bank of India’s board to transfer a record surplus of almost ₹2.11 lakh crore to the Union government for 2023-24 will serve as a welcome shot in the arm for the new government when it presents its Budget in July. More than double the previous year’s ₹87,416 crore payout as well as the ₹1.02 lakh crore dividend-cum-surplus receipts from the banking and financial system and RBI that was pencilled into the interim Union Budget for 2024-25, the transfer should give the next Finance Minister a fair bit of elbow room when computing the spending and fiscal math. While the specifics of the RBI’s 2023-24 balance sheet will be known in the coming days, clearly a combination of substantial gains from higher interest income earned on its holdings of overseas securities and the gains from its interventions in the foreign exchange market to smoothen volatility in the rupee’s moves must have contributed in swelling the surplus. For the new government that will assume office after the results of the ongoing general election are declared on June 4, the bountiful surplus transfer from the RBI will give it an opportunity to raise capital spending, especially at a time when the key engine of private consumption expenditure is still in search of sustained tailwinds.