MUMBAI: The Reserve Bank of India board on Friday approved a dividend of Rs 30,307 crore to the government for 2021-22, marking a nearly 70% decline in the payout from last year’s Rs 99,122 crore.
The lower dividend comes on the back of a lower realisation from the disinvestment of the government’s shares in LIC. Over the last few years, the RBI’s large surplus transfers have helped the government meet its higher spending requirements. While the Centre will see an increase in expenditure commitments during the current financial year too as subsidies are projected to rise, it will have to depend on tax revenues to bridge the gap.
