INSUBCONTINENT EXCLUSIVE:
today said the government has not dropped in any request for an interim dividend payout of Rs 30,000 crore, after the centre's recent move
its spending."I have seen it only in media
I have no such demand from the government for interim dividend," the central bank's Governor Shaktikanta Das told reporters today while
announcing a policy rate cut to kickstart economic growth languishing at six-year lows.The government may request an interim dividend of Rs
30,000 crore from the RBI in order to meet its fiscal deficit target of 3.3 per cent of gross domestic product (GDP), news agency Press
Trust of India reported on September 28 quoting unnamed sources
A final assessment would be made in early January, the report said."The government has made a statement that they will adhere to the fiscal
Therefore, we have no reason to doubt the commitment to maintain the numbers as given in the budget," Mr Das told reporters
"So whatever short fall is expected because of corporate tax rate cuts, the government has the option of increasing or making it up from
other sources," he said.The slowdown in the economy has affected consumer spending, with many FMCG firms reporting low salesAs the manager
of government finances, the central bank pays the government a dividend each year to help it meet its financial targets.The National
Democratic Alliance government in August, just three months in its second term after a big election win, received a massive payout of Rs
1.76 lakh crore from the RBI
It included a dividend of Rs 1.23 lakh crore and a surplus of Rs 52,640 crore
The transfer rivalled the stimulus that some Group of 20 nations pumped into their economies during the global financial crisis a decade
ago.Last year the RBI paid the government an interim dividend of Rs
28,000 crore.The six-member monetary policy committee (MPC) today cut the repo rate by 25 basis points to 5.15 per cent, in line with
One basis point is one hundredth of a percentage point
The reverse repo rate was reduced to 4.9 per cent
The repo rate is the rate at which the central bank lends short term funds to the banks.Expectations of the government missing its fiscal
deficit target have risen following a number of measures taken to lift growth from six-year lows of 5 per cent in the first quarter of the
current financial year.While announcing the corporate tax cut last month, Finance Minister Nirmala Sitharaman said she was "conscious" of
the effect the announcement would have on India's fiscal deficit target
"We are conscious of the impact all this will have on our fiscal deficit," said Ms Sitharaman, who has targeted to narrow the budget gap to
3.3 per cent of the GDP this year.Get Breaking news, live coverage, and Latest News from India and around the world on
TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
