Government will get big funds
On the global front, while the economies of many countries are feeling pressure due to tension in the Middle East, there is relief news for India. Actually, the Reserve Bank of India (RBI) is preparing to hand over the biggest dividend ever to the Central Government this year. This amount will act as a strong shield for the government treasury. The country’s treasury is continuously filling up on the basis of better government policies and strong economic management. When the government has sufficient surplus funds, it is able to carry out infrastructure and public welfare works in the country at a faster pace without imposing any additional tax burden. There is every hope that the final approval on the quantum of this bumper dividend will be given in the important meeting of the RBI Board to be held this month.
All previous records are sure to be broken
‘Economic Capital Framework’ (ECF) works behind how the surplus fund of the Reserve Bank is decided. According to the rules of this framework, the central bank has to reserve 4.50 to 7.50 percent of its balance sheet as ‘Contingent Risk Buffer’ (CRB). The amount left after this goes into the government treasury. In the last financial year (2024-25), RBI had given a huge dividend of Rs 2.69 lakh crore to the government. This figure was 27 percent more than the Rs 2.11 lakh crore transferred last year. This time this old record is also going to be left behind.
Great profits of government banks become strength
Not only RBI is strengthening the financial position of the government, but the excellent performance of public sector banks (PSBs) is also playing a big role in this. The direct impact of the government’s banking reforms is now visible on the ground. Due to improvement in asset quality and faster pace of loan disbursement, the total net profit of these banks has jumped by 11.1 percent to reach a historic level of Rs 1.98 lakh crore in the financial year 2025-26. At the same time, operating profit also stood at Rs 3.21 lakh crore. This is the fourth consecutive year when public sector banks have registered profits. According to the budget documents, the government had estimated a dividend of Rs 3.16 lakh crore from the RBI and nationalized banks in 2026-27. But considering this excellent earnings of the banks, the actual amount is going to be much more than the budget estimates.
Economy will get new momentum
This money received from RBI and banks is part of ‘non-tax revenue’. For the financial year 2026-27, the central government has set a target of raising Rs 6.66 lakh crore from non-tax revenue. Apart from this, public sector companies (PSEs) and other investments are also expected to give dividend of Rs 75,000 crore, which was Rs 71,000 crore last year. At the same time, a sharp jump has also been recorded in tax income. Tax revenue is estimated to increase from Rs 26.74 lakh crore to Rs 28.66 lakh crore. All this money will work to protect the country’s economy from external shocks. This fund will give complete financial freedom to the government to deal with any adverse situation arising due to the ongoing conflict in the Middle East, due to which India’s development journey will continue to move forward without any stop.
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