RBI Approves Dividend Payment of Rs 57,000 Crore to Government

RBI follows July-June financial year

The Reserve Bank of India (RBI) on Friday approved a dividend payment of over Rs 57,000 crore to the government for the current financial year. The development comes at a time when the government’s fiscal deficit broke a record Rs 6.62 lakh crore in the April-June period, as the coronovirus epidemic affected the government’s revenue collection. Fiscal deficit – an indication of the total borrowings required by the government – occurs when revenue collection expenditure declines.

Here are 10 things to know:

  1. The RBI board held its 584th meeting today, approving the transfer of Rs 57,128 crore as surplus to the central government, reviewing the current economic situation, continuing global and domestic challenges, and reducing economic Took monetary, regulatory and other measures. Effect of COVID-19.

  2. In recent years the government has been pressurizing the central bank to increase its payments.

  3. As per the Union Budget 2020-21, the dividend of the central bank and other state-run financial institutions is Rs 60,000 crore.

  4. Last year, the RBI board approved a record payment of Rs 1.76 lakh crore to the government, including a dividend of Rs 1.23 lakh crore and surplus capital of Rs 52,640 crore.

  5. As the manager of government finance, the central bank pays dividends each year to help the government meet its financial goals.

  6. Receipts from various sources – including dividends from the central bank – help the government meet its fiscal deficit target.

  7. The government has projected a fiscal deficit at 3.8 percent of the country’s gross domestic product (GDP) in the year ending in March 2021 – a goal many economists expect the government to have compared to 3.3 percent for the fiscal year 2019-20 I will miss

  8. According to economists, the fiscal deficit is expected to widen due to the government’s COVID-19-impacted tax collection and the government pushing forward spending.

  9. The country is headed for its first full-year economic contraction in more than four decades.

  10. Its GDP is projected to decline by 5.1 per cent in the current financial year and 9.1 per cent in the worst case scenario, according to a poll by news agency Reuters. If it does, it will mark the country’s worst economic performance since 1979.

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