How could the govt spend RBI's Rs 1.76 lakh crore surplus
The finance minister last week announced front loading Rs 70,000 crore of capital into PSBs, but state-owned banks need much more capital
- Aug 26, 2019,
- Updated Aug 27, 2019 11:26 PM IST
Days after finance minister Nirmala Sitharaman announced a slew of liquidity measures including a roll-back of surcharge on FPI and domestic investors to arrest the downslide in the economy, the Reserve Bank of India (RBI) has come out with a bonanza of Rs 1.76 lakh crore for the government. This was needed by the government as its finances were stretched. In fact, there was no room for any stimulus. Now Rs 68,000 crore was earlier factored in by the government as a dividend for 2018-19. There is an addition Rs 55,414 crore that is coming as dividend in the current year. In addition, there is Rs 52,637 crore, which is coming as an excess provision write back. The RBI will also give additional dividend for 2019-20. So, where should government use current surpluses to get best results?
Days after finance minister Nirmala Sitharaman announced a slew of liquidity measures including a roll-back of surcharge on FPI and domestic investors to arrest the downslide in the economy, the Reserve Bank of India (RBI) has come out with a bonanza of Rs 1.76 lakh crore for the government. This was needed by the government as its finances were stretched. In fact, there was no room for any stimulus. Now Rs 68,000 crore was earlier factored in by the government as a dividend for 2018-19. There is an addition Rs 55,414 crore that is coming as dividend in the current year. In addition, there is Rs 52,637 crore, which is coming as an excess provision write back. The RBI will also give additional dividend for 2019-20. So, where should government use current surpluses to get best results?