Strong advance tax and excise duty collections led to a Rs 5,145 crore increase in the government’s balance with the Reserve Bank of India (RBI) during the week ended December 25, 2009.
Advance tax collections were around Rs 54,000 crore in the third quarter of the financial year.
During the week ended December 18, when advance tax payments took place, the government’s balance with the central bank went up to Rs 48,394 crore from Rs 101 crore at the end of December 11. According to RBI data, the government’s balance with the central bank stood at Rs 53,538 crore at the end of December 25, 2009. In this financial year, the government parked Rs 53,438 crore with RBI. During the same period last year, the government’s balance with RBI was Rs 101 crore. “An increase in the balance is the result of good revenue collections from excise, service and import duties,” said a senior executive of a public sector bank.
