Robust RBI dividend to create ₹70,000-cr extra fiscal space

THE RECORD HIGH dividend payout by the Reserve Bank of India at ₹2.69 lakh crore — about ₹50,000 crore more than what was factored into the Union Budget for FY26 — could help the government reduce the fiscal deficit further or spend more to boost economic activity.

- PRASANTA SAHU

Including dividends from public sector financial institutions, total dividend receipts in FY26 could exceed the budgeted target by around ₹70,000 crore.

RBI dividend has been a major source of non-tax revenues for the Centre, with its share rising from 10.6% in FY23 to 46.1% in FY26. The RBI had paid a dividend of ₹2.1 lakh crore in FY25 as against the budget estimate of ₹80,000-90,000 crore, helping the Centre revise down the fiscal deficit for the year to 4.8% of GDP from 4.9%.