look news india
The Reserve Bank of India is going to give a dividend of Rs 2.1 lakh crore to the Central Government for the financial year 2023-24. They will get this gift when a new government comes to power in the country after the Lok Sabha elections. When the budget is presented in July, an amount of Rs 2.1 lakh crore will be deposited in the government's account. If we look at it this way, we will get strength as soon as the new government comes. How will such a huge amount strengthen the economy?
The dividend declared by the RBI for the government is almost double the dividend for the financial year 2022-23. The income of RBI and other financial institutions is double the Rs 1.2 lakh crore, which the government had estimated in its interim budget. In this way, the government's income in this category has doubled than before.
Then how did RBI earn so much?
The question is what happened in all these years that RBI earned so much that it gave almost double the dividend to the government. There are three main reasons behind this. RBI's earnings in the financial year 2023-24 increased due to the strong dollar. RBI bought US government bonds worth about $250 billion and earned a lot of interest on them.
Apart from this, the repo rate remained at 6.5 percent almost throughout the year in 2023-24. This benefited the RBI. To meet the capital requirements of the country's commercial banks, RBI gives short-term loans and the interest earned on them is called the repo rate, while during 2022-23 the repo rate was continuously revised from 4% to 6.5%, so in 2023-24 the central bank got continuous income from it, while this year the banks were constantly facing cash shortage, due to which the banks had to take more loans from the RBI.
Third, RBI earns from foreign exchange trading, to balance the value of rupee, RBI sells dollars in the market. In such a situation, it earns from its purchase and sale margin. But RBI worked with a lot of planning here, according to ET news, if the market needed to release 5 billion dollars, then RBI issued 25 billion dollars at a higher rate and when the rate came down a bit, it again bought 20 billion dollars. RBI earned this way by harvesting dollars.
The new government will get a huge amount from RBI's dividend! This will help in improving your budget plan. Assuming the current government comes back to power after the elections, this Rs 2 lakh crore budget will be equivalent to about one-fifth of its total capital expenditure budget. Strengthening the infrastructure in this country will help in increasing the demand for cement and rods.
Now if we look at it from another perspective, when there is a change of power after this election, the CM will form the government of the opposition Congress and its allies. In this, the government will need a big budget for Mahalaxmi Yojana, loan waiver of farmers, education loan waiver of students and 30 lakh government jobs.
So let us assume that when the government provides employment to 30 lakh people on an average package of Rs 6 lakh, then it will get a good budget from this Rs 2.1 lakh crore. This will also increase the demand for consumer goods within the country on a large scale.
