Govt lost political capital in getting RBI funds but gained very little

In retrospect, the government's move to get more RBI funds for itself has paid it no dividend

What the central board of the Reserve Bank of India (RBI) decided last Monday, based on the recommendations of the Bimal Jalan committee, was disappointing for those in the finance ministry, who had hoped to secure for the exchequer a little more extra money from the central bank’s reserves.

But what has not been appreciated so far is that a bigger disappointment awaits the government when it gets ready to present the next Budget, just five months later in February 2020. Along with that will arise a politically embarrassing question on the Modi government’s governance style. If so little was