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During the 602nd meeting held in Mumbai, the Central Board of Directors of the Reserve Bank of India, led by Governor Shaktikanta Das, approved the transfer of Rs 87,416 crore as dividend to the government for the fiscal year 2022-23.
The RBI Board assessed the global and domestic economic conditions, considering challenges arising from geopolitical developments during its meeting. It agreed to transfer a surplus of Rs 87,416 crore to the Central Government for the fiscal year 2022-23. Additionally, the Board decided to maintain the Contingency Risk Buffer at 6%. In February, the government had anticipated a 17% increase in dividends, amounting to Rs 48,000 crore, from the RBI, public sector banks, and financial institutions for the year 2023-24.
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The government set a target of collecting Rs 40,953 crore from the Reserve Bank of India (RBI) and public sector financial institutions in the fiscal year that concluded in March 2023.
It is worth mentioning that after the board meeting in May 2022, the RBI approved a dividend payment of Rs 30,307 crore to the government.
According to the Budget document, the projected dividends from public sector enterprises and other investments for the fiscal year 2023-24 are set at Rs 43,000 crore, aligning with the previous fiscal year.
In the Revised Estimate for the fiscal year 2022-23, the dividend from public sector enterprises and other investments exceeded the Budget Estimate. It amounted to Rs 43,000 crore, compared to the initially projected Rs 40,000 crore.
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According to the Revised Estimate (RE) for the fiscal year 2022-23, the total dividend collection for the upcoming financial year is projected to reach Rs 1,15,820 crore, surpassing the RE of Rs 1,08,592 crore.
Prime Minister Narendra Modi’s government is counting on the projected rise in dividend payout to help reach its goal of lowering the fiscal deficit to 5.9% of the gross domestic product during the current fiscal year, a decrease from 6.4% in the preceding year.
