The government expects Rs 58,000 crore in dividend from the Reserve Bank of India (RBI) in the next financial year, a senior finance ministry official told reporters on Friday. That compares with Rs 65,876 crore the central bank paid this fiscal.
The expected payout from RBI in financial year 2017-18 does not factor in any special dividend from the central bank on account of demonetisation. The government did not want to make any “imaginary” assumptions, the official said.
The RBI's contribution will be part of Rs 74,901-crore dividend that the government has budgeted from the central bank, nationalised banks and financial institutions for the next fiscal, the official said.
According to the revised budget for fiscal 2016-17, the government's earnings from dividends from the RBI, nationalised banks and financial institutions stood at Rs 76,171 crore.
The central bank pays the government a dividend every year after closing its accounts in July. The RBI makes the payout largely from the interest it earns from investments in bonds.
On the impact of the Seventh Pay Commission recommendations on the government's finances, the official said the Union Budget for fiscal 2017-18 did not account for an increase. The government, however, expects a higher outgo on account of these allowances, the official said.
A committee headed by Finance Secretary Ashok Lavasa, which was set up to review the allowances, is yet to submit its report to the finance minister, the official said.
On Thursday, the government kept interest rates on small savings scheme unchanged for the January-March quarter. The official, however, said a reduction is warranted and the government will review the rates for the next quarter.
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