- Govt gets an additional ₹86,000 crore above the budgeted ₹90,000 crore from RBI
- The government has set a fiscal deficit target of 3.3% of gross domestic product for the current fiscal
The Reserve Bank of India (RBI) will transfer ₹1.76 trillion to the government this fiscal, the central bank said after a board meeting.
The transfer includes ₹1.23 trillion of surplus for 2018-19 and ₹52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting, RBI said in a statement on Monday. The higher surplus is due to the long-term forex swaps and the open market operations (OMO) conducted by the central bank over the last fiscal.
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The surplus transfer was finalized in line with the recommendations of the committee under former central bank governor Bimal Jalan. RBI’s central board accepted all the recommendations of the committee.
The additional amount of ₹86,000 crore that the government will receive this year above its budgeted ₹90,000 crore as transfers from RBI could be either used to provide fiscal stimulus to a sagging economy, reduce off-balance sheet borrowings or meet the expected shortfall in revenue collections.
Source: Livemint
