On May 19, 2023 the Reserve Bank of India’s (RBI) Central Board of Directors has approved the transfer of Rs 87,416 crore as surplus to the Central government for 2022-23. The board also decided to raise the Contingency Risk Buffer to 6.00 percent from 5.50 percent.
Some Important Points
- In the financial year ending March 2023, government aimed to garner Rs 40,953 crore from RBI and public sector financial institutions.
- As per the Budget document, dividends from public sector enterprises and other investments have been pegged at Rs 48,000 crore for FY24 as well.
- RBI has approved a dividend payment of Rs 30,307 crore to the government in 2022.
- A higher dividend payout is expected to help government to meet its target of lowering the fiscal deficit to 5.9% of gross domestic product in the current financial year from 6.4% a year ago.
- The annual rate of inflation based on all India Wholesale Price Index (WPI) number is (-) 0.92% (Provisional) for the month of April, 2023 (over April, 2022) against 1.34% recorded in March. The board also decided to raise the Contingency Risk Buffer to 6.00 percent from 5.50 percent.