RBI likely to transfer additional funds to govt this fiscal year

Lower growth forecast to add to fiscal pressure

The Reserve Bank of India (RBI) is likely to transfer additional funds to the government this fiscal year. The finance ministry has been seeking Rs 430 billion in dividends from the RBI against the Rs 306.5 billion that the central bank has already paid for 2017-18.

The additional funds would give some relief to the government as its task of reining in the fiscal deficit at 3.2 per cent of gross domestic product (GDP) became tougher due to lower economic growth in nominal terms (current prices) than was estimated in the Budget for 2017-18.

Among the revenue items in which