RBI's dividend eases govt's fiscal position

The Reserve Bank of India's bumper dividend of about Rs 2.7 lakh crore will ease the fiscal position of the government, economist at SBI said in a report.

- PRESS TRUST OF INDIA

Finance Minister Nirmala Sitharaman in her Budget for 2025-26 projected a dividend income of Rs 2.56 lakh crore cumulatively from the RBI and public sector financial institutions. With the RBI's transfer, this number would now be much higher than the budgeted estimates.

"We expect the fiscal deficit to ease by 20 basis points from the budgeted level to 4.2 per cent of GDP. Alternatively, it will open up for additional spending for around Rs 70,000 crores, other things remaining unchanged." according to the latest edition of SBI Research's Ecowrap.