Budget 2024: After benefiting greatly from the Reserve Bank’s dividends in the current fiscal year, the government anticipates collecting roughly ₹70,000 crore in fiscal year 2024 from both the central bank and financial institutions (FIs).
The government is anticipating collecting approximately ₹70,000 crore from the central bank and financial institutions (FIs) in the upcoming financial year, after benefiting greatly from the Reserve Bank’s dividends in the current fiscal year.
According to reports, the government would set the receipts from financial institution dividends at a significantly higher level than the ₹48,000 crore projected for the current fiscal year in the interim budget, which Finance Minister Nirmala Sitharaman is expected to present to the Lok Sabha on February 1.
Public sector banks and financial institutions will pay out more dividends in the upcoming year than they did in the current one since they produced strong quarterly results during the current fiscal year.
The RBI issued a dividend of ₹87,416 crores, exceeding the budget projection for the current financial year.
Public sector banks and financial institutions will pay out more dividends in the upcoming year than they did in the current one since they produced strong quarterly results during the current fiscal year.
According to sources, it would be reasonable to anticipate that the RBI and financial institutions would pay out roughly ₹70,000 crore in dividends in FY’25.
In 2023–24, the government set aside ₹48,000 crore, a 17% increase in dividends from public sector banks, financial institutions, and the Reserve Bank of India (RBI).
However, the Reserve Bank’s transfer of ₹87,416 crore as excess to the central government for 2022–2023 greatly exceeded this goal.
The Reserve Bank of India transferred ₹87,416.22 crore to the central government in 2023–24. This amount is greater than the ₹30,307.45 crore transferred the previous year and the ₹48,000 crore budgeted amount under the Dividend/Surplus transfer of the Reserve Bank of India, Nationalized Banks and Financial Institutions in the Union Budget 2023–24.
The government obtained ₹40,953 crore from public sector financial institutions and the RBI during the preceding fiscal year.
In addition to increased revenue mobilization, the larger dividend from banks and other financial institutions would aid in the achievement of a glide path for the budget deficit.
The government intends to lower the fiscal deficit from an expected 5.9% of GDP in 2023–2024 to below 4.5% by 2025–2026 in accordance with the fiscal consolidation plan.
According to the roadmap, the government must reduce the fiscal deficit to 5.4% of GDP in the upcoming fiscal year, which starts on April 1, 2024.
