He also went on to claim that an increase in the Public Provident Fund limit by Rs 1 lakh to Rs 2.5 lakh for individual households under 80C will lead to additional savings of more than Rs 2 trillion compared to the total revenue foregone of Rs 40,000 crore, even after adding to the interest burden. It could be a win-win for the revenue-starved government of the day. Mind you, the government has reportedly asked the central public sector undertakings to declare a dividend of Rs 19,000 crore apart from seeking some hefty sums of money as interim dividend from the Reserve Bank of India (RBI), representing a part of its annual transfer of surpluses in the month of July after finalisation of its annual books of accounts (as on June 30 each year) under Section 47 of the RBI Act. It might be in addition to the transfer of a massive amount (out of the central bank’s so-called excessive capital reserve funds) as was recently identified by a specially constituted committee led by former governor Bimal Jalan, at the insistence of the government.
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