RBI transfers 991.22 billion rupees to government over budget
By Swati Bhat and Aftab Ahmed
MUMBAI / NEW DELHI (Reuters) – The central board of the Reserve Bank of India has approved a higher than expected surplus transfer of 991.22 billion rupees ($ 13.58 billion) to the government, he said. he said Friday in a statement.
The RBI will transition to an April to March fiscal year from that fiscal year, but followed a July to June year previously. Thus, the announced surplus is for the 9-month period from July 2020 to March 2021, the bank said in its press release.
The government had planned to receive a surplus of approximately Rs.500 billion from the RBI to be recognized in the 2021/22 budget, while in the previous full financial year the RBI had transferred RBI 571.28 billion. rupees in excess.
The higher-than-expected dividend or surplus transfer to the government comes as it expects a steep sequential drop in tax collections due to a severe second wave of COVID-19 that has forced lockdowns.
With the exception of 2018/19, this is the highest transfer the RBI has ever made in a year. In FY19, 1.76 trillion rupees was transferred to the government, which included a one-time transfer of additional reserves.
The government is likely to struggle to meet its $ 24 billion privatization and divestment target, while goods and services tax revenues are also expected to decline, a government official said.
âThe government is also under pressure because it does not have the opportunity to cut spending as it has to spend to stimulate certain investments and revive growth from the historically low levels it reached last year. The dividend is welcome, but the government will need more and hope the divestment can deliver, âthe official said.
($ 1 = 73.0180 Indian rupees)
(Reporting by Swati Bhat; Editing by Alison Williams, Robert Birsel)