RBI has decided to Transfer 25% more Surplus this Fiscal Year to aid the Government
Aug 14, 2015: RBI has decided to transfer a surplus amount of Rs. 65,896 crore this year. This surplus amount is 25% higher than the last year. The previous year that ended 30 June 2014, RBI had transferred RS. 52,679 crore surplus.
It is an interesting fact that this year surplus is the highest ever amount given to the Government.
Devendra Kumar Pant said, "This is the part of non-tax receipts, and it will help the government bridge any shortfall it may have."
"Especially given the fact that first quarter direct tax growth has not been very encouraging," Care Ratings Chief Economist added.
In July, indirect collections rose to 39.1%, there had been the hike on excise duty on oil as well, and some other factors also contributed.
In the previous Fiscal Year, the deficit came out to be 4%, while this year government has projected a deficit of 3.9% of GDP.This financial year will close on June 30.
Care Ratings Chief Economist Madan Sabnavis has given his response saying,”" The Higher fund transfer by RBI can be used by the government in recapitalizing the public sector banks."
The government has announced to pour Rs.11,500 crore in public sector banks that will help for recapitalization this fiscal.