The government may request an interim dividend of around Rs. 30,000 crore from the Reserve bank of India (RBI) in order to meet its fiscal deficit target, Mint newspaper reported on Sunday citing news agency
Press Trust of India.
The government is likely to seek the dividend payment towards the end of the April-March financial year to meet the government’s fiscal deficit target of 3.3% of gross domestic product (GDP), government
sources told PTI.
The government could request an interim dividend of Rs. 30,000 crore from the RBI during the current fiscal year, one source said, adding that a final assessment would be made in early January.
The Finance Ministry and the RBI were not immediately available for comment.
As the manager of government finances, the central bank pays the government a dividend each year to help the government meet its financial targets.
Last year the RBI paid the government an interim dividend of Rs. 28,000 crore.
Expectations of the government missing its fiscal deficit target have risen following a number of measures taken to lift growth from 6 year lows of 5% in the first quarter of the current financial year.
Analysts also say the government could resort to stake sales in state-run companies to bridge its revenue deficit and avoid a fiscal slippage.
