RBI’s dividend of big relief for the government, 20-30 basis points may decrease fiscal deficit – RBI Dividend of Rupees 2 69 Lakh Crores will provide big relief to government Fiscal deficit May Come Down 20 30 Basis Points

On May 23, RBI announced a dividend of Rs 2.69 lakh crore for the government. This is less than the estimated economists, but more than the dividend of a year ago. SBI report states that this dividend has a dollar sales, more returns on foreign exchange and good interest income. Economists had projected the dividend between 2.5 to 3 lakh crore rupees this time.

Pressure on government finance will decrease

Experts say that Rbi Dividend of (Rbi dividend) Even though it is less than estimated, it will give a big relief to the government. This can provide great relief to the government in the case of fiscal deficit. The government’s fiscal deficit may decrease from 20 to 30 basis points. This year, the government has estimated the fiscal deficit 4.5 in the budget. The government has increased the focus on reducing fiscal deficit in the last few years. It has shown good results.

2.56 dividend income estimates in the budget

The government had estimated a dividend income of Rs 2.56 lakh crore from RBI and other financial institutions in the union budget this year. After RBI’s announcement of dividend of Rs 2.69 lakh crore, the total dividend income of the government can remain very high. The reason for this is that the government will also get dividend from other financial institutions. With this, the total dividend income of the government can be more than Rs 3.5 lakh crore.

Recently the government made changes in ECF

The central bank changed the Economic Capital Framework (ECF) last week. Under this framework, it is decided that the RBI will transfer the government as a dividend and how much will be kept with it. For FY 2023-24, RBI gave a dividend of Rs 2.1 lakh crore to the government. In this way, the dividend of this time is much higher than the dividend of a year ago.

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Source of central bank income

RBI has many income in many ways. The biggest stake in this is the interest of the government’s bonds and treasury bills. Second, RBI gets returns from foreign exchange reserves. The central bank invests this return in foreign assets considered safe. The RBI has a capital gain on this. Recently, RBI has increased its investment in gold. Gold prices have risen in the last few months. RBI has benefited from this.