In 2019-2020 Government Expects Rs 69,000 Crore Dividend From RBI

The gap between total expenditure and revenue, to 3% of the GDP by 2020-21, and eliminate primary deficit.

The finance ministry expects RS 69,000 crore dividend from RBI in the next year source said.

Gov. projected to mobilise Rs 82,911.56 crore as dividend or surplus from the RBI, nationalized banks during 2019-2020.

If RBI approves transfer of 28,000 crore requested by the government as interim dividend for the current fiscal, total surplus transfer by the central bank would be Rs 68,000 in 2018 – 2019

The RBI, which follows July-June financial year, has already transferred Rs 40,000 crore in the current fiscal The receipt from various sources, including RBI dividend, helps government meet fiscal deficit target.

In the Interim Budget 2019-2020, the government has projected a fiscal deficit target of 3.4 per cent for the next financial year 2019-2020.

Primary deficit refers to the deficit left after subtracting interest payments from the fiscal deficit.

The government further said the gross tax revenue as a per cent of GDP is expected to increase to 12.1 per cent of GDP in 2019-20 and stabilise at that level in 2020-21 before climbing up to a level of 12.2 per cent of GDP.