22, February, 2024
HomeIndiaBudget 2024: Government Targets Higher Dividend of Rs 70,000 Crore from RBI and Financial Institutions

Budget 2024: Government Targets Higher Dividend of Rs 70,000 Crore from RBI and Financial Institutions

Published on

In the upcoming Union Budget for the next fiscal year, the government is poised to set a higher dividend target, aiming to receive around Rs 70,000 crore from the Reserve Bank of India (RBI) and financial institutions.

Read Also |¬†Steve Ballmer’s Billion-Dollar Windfall: Unraveling Microsoft’s Dividend Game

This projection surpasses the current fiscal year’s estimate of Rs 48,000 crore and comes on the heels of the substantial dividend of Rs 87,416 crore received from the RBI in the ongoing financial year.

Finance Minister Nirmala Sitharaman is expected to unveil these financial plans in the Lok Sabha on February 1. With robust quarterly performances by public sector banks and financial institutions in the current financial year, the anticipation is for a heightened dividend payout compared to the ongoing year.

The government had initially set a 17% higher dividend target of Rs 48,000 crore for the fiscal year 2023-24. However, this projection was far exceeded as the RBI transferred a surplus of Rs 87,416.22 crore to the central government for the financial year 2022-23.

Considering the favorable financial performance of banks and financial institutions, sources suggest that a feasible expectation for the next fiscal year is a dividend payout of approximately Rs 70,000 crore. This optimistic outlook, coupled with increased tax mobilization, is seen as a significant contributor to achieving the fiscal deficit glide path.

Read Also | Infosys Ex-Dividend Trading: Key Highlights for Dividend Stock Enthusiasts in 2023

In the previous financial year, the government mobilized Rs 40,953 crore from the RBI and public sector financial institutions. As part of the fiscal consolidation roadmap, the government aims to reduce the fiscal deficit to below 4.5% by 2025-26 from an estimated 5.9% of GDP in 2023-24. According to the roadmap, the target for the next financial year, beginning April 1, 2024, is to bring down the fiscal deficit to 5.4%.

Latest articles

India-China Corps Commander Talks: 21st Round Addresses Disengagement Challenges

The 21st Corps Commander Level Meeting between India and China unfolded on Monday at...

Centre Urges Dialogue as Farmers Tear-Gassed: Latest Developments in Delhi Chalo Protest

On Wednesday, the Centre appealed to protesting farmers for the fifth round of talks,...

UN Halts Vital Food Aid to Northern Gaza Amid Escalating Violence

The World Food Programme (WFP), a key humanitarian organization, has suspended crucial food deliveries...

More like this

India-China Corps Commander Talks: 21st Round Addresses Disengagement Challenges

The 21st Corps Commander Level Meeting between India and China unfolded on Monday at...

Centre Urges Dialogue as Farmers Tear-Gassed: Latest Developments in Delhi Chalo Protest

On Wednesday, the Centre appealed to protesting farmers for the fifth round of talks,...

Raisina Dialogue 2024: Exploring Global Challenges and Opportunities

The Raisina Dialogue, a significant annual conference focusing on geopolitics and geoeconomics, is set...
Enable Notifications OK