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RBI's payout unlikely to plug the huge govt revenue hole created by Covid

Last year the RBI's board approved a record payment of Rs 1.76 trillion ($23.5 billion) to the government, which included Rs 1.23 trillion as dividend and Rs 526.4 billion from its surplus capital

Finance Minister Nirmala Sitharaman announcing details of  special package at a press conference in New Delhi( Photo- Sanjay K Sharna)
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With limited alternative revenue sources and the budget gap in the first three months of the fiscal year already standing at 83% of the full-year target, calls are growing for the RBI to directly finance the fiscal deficit.

Anirban Nag | Bloomberg
India’s Finance Minister Nirmala Sitharaman can expect another payout from the central bank in coming weeks, but it’s unlikely to plug a huge government revenue hole created by the pandemic.

The Reserve Bank of India’s board, led by Governor Shaktikanta Das, is meeting Friday, and since August is typically the month the central bank makes its annual transfer to the government, expectations are running high that the RBI will disclose its dividend payout.

Last year the RBI’s board approved a record payment of Rs 1.76 trillion ($23.5 billion) to the government, which included Rs 1.23 trillion as dividend and Rs

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