Points to Remember:
- The government may seek an interim dividend of up to ₹30,000 crore from the RBI towards the end of the financial year, officials said.
- The government may reportedly do so to meet its 2019-20 fiscal deficit target of 3.3% of the GDP.
- Rating agencies earlier warned that revenue losses from the government reducing corporate tax rate could widen the deficit.
- In the past, the government has taken the route of seeking interim dividend from the RBI to balance its account.
- Last fiscal, the RBI paid Rs 28,000 crore as interim dividend.
- Out of the net income of Rs 1,23,414 crore for the year 2018-19, RBI had already transferred Rs 28,000 crore to the government as interim dividend in March 2019.
- As far as gross borrowing is concerned, Budget 2019-20 pegged it at Rs 7.10 lakh crore for the current fiscal, significantly higher than the Rs 5.35 lakh crore borrowing programme for financial year 2018-19.
Important Possible questions based on above News:
- How much interime dividend will Government seek from RBI towards the end of the financial year? Rs. 30000 crore
- By March 2019, RBI has transferred __ to the government as interim dividend. Rs. 28000 crore