RBI's Rs 87,416-cr surplus provides a welcome fiscal boost for Centre

This is not the first time that the RBI has paid a windfall surplus to the Centre

Arup Roychoudhury New Delhi
Reserve Bank of India, RBI

Photo: Bloomberg

Listen to This Article

The Reserve Bank of India’s (RBI’s) decision to transfer Rs 87,416 crore as surplus for the current financial year (FY24) will provide a welcome fiscal boost to the Centre.
The amount, decided at the RBI’s board meeting on Friday, which will be counted as part of the Centre’s non-tax revenue for FY24, is 82 per cent more than the combined target for surplus from the RBI and state-owned banks and financial institutions of Rs 48,000 crore.
Provided all other Budget assumptions, including tax revenues, expenditure and projected nominal GDP, remain unchanged, just the surplus from the RBI would take the Centre’s FY24 fiscal deficit to Rs 16.99 trillion or 5.6 per cent of GDP, compared with Rs 17.87 trillion or the budgeted 5.9 per cent of GDP, our calculations show.

Also Read

Budget 2023-24: Manufacturing sector eyes revised taxations, new PLIs

Union Budget 2023: Experts don't expect surprises in social sector outlay

Budget 2023: A look back at some major announcements in previous Budget

Crypto industry wants 0.1% TDS, Sebi-like regulator in Budget 2023

Budget 2023 to increase capex for infra projects for growth: Experts

RBI to transfer Rs 87,416 cr surplus to govt for FY23, thrice FY22 figure

India's forex reserves edge towards $600 billion, hit near 1-year high

India eyes nationwide use of 1% of SAF for domestic airlines by 2025

Go, fish: India's blue economy surges amid call for sustainable practices

El Ninos cost trillions of dollars with lasting economic scars: Study

First Published: May 19 2023 | 7:44 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to