Government may seek Rs 30,000 crore interim dividend from RBI: Report
New Delhi: The government may seek an interim dividend of about Rs 30,000 crore from the RBI towards the end of the financial year to meet its fiscal deficit target of 3.3 per cent of GDP for 2019-20, sources said.
Government finances have come under pressure due to moderation in revenue collection and a slew of measures taken to lift growth from a six-year low of 5 per cent in the first quarter of the current fiscal.
"If required, the government may request the Reserve Bank of India for interim dividend of Rs 25,000-30,000 crore during the current fiscal," an official said.
The assessment in this regard would be made in early January, the official added.
Apart from the RBI dividend, there are other means of bridging any shortfall, including mop up from disinvestment and higher utilisation of National Small Saving Fund (NSSF), sources added.
In the past, the government has taken the route of seeking interim dividend from the RBI to balance its account. Last fiscal, the RBI paid Rs 28,000 crore as interim dividend.
During 2017-18, the government received Rs 10,000 crore as interim dividend from the central bank.
Last month, Governor Shaktikanta Das-led RBI central board gave its nod for transferring to the the government a sum of Rs 1,76,051 crore, comprising Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF).
Out of the net income of Rs 1,23,414 crore for the year 2018-19, RBI had already transferred Rs 28,000 crore to the government as interim dividend in March 2019.
The government got a higher dividend of Rs 95,414 crore during the current fiscal as against the budgetary estimate of Rs 90,000 crore.
As far as gross borrowing is concerned, Budget 2019-20 pegged it at Rs 7.10 trillion for the current fiscal, significantly higher than the Rs 5.35 trillion borrowing programme for financial year 2018-19.
Gross borrowings of the government during the first half of financial year 2019-20 will stand at Rs 4.42 trillion, which works out to 62.3 per cent of the total target for the entire year.
To pull the economy out of a six-year low growth and a 45-year high unemployment rate by reviving private investments, the government has taken slew of measures, including cut in corporate tax rate by almost 10 percentage points having tax implication of Rs 1.45 trillion.
As part of the exercise, the government also withdrew the enhanced surcharge on long- and short-term capital gains for foreign portfolio investors as well as domestic portfolio investors with revenue implication of Rs 1,400 crore.
Even with regard to the Goods and Services Tax (GST), the all-powerful GST Council approved reduction in many items with impact on the exchequer.
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TN govt reaffirms 21-yr age limit for liquor sales
Chennai (PTI): Seeking to curb rising alcohol consumption among minors in the state, the Tamil Nadu government has reinforced the legal age requirement of 21 for all liquor purchases and consumption.
The government has also ordered the closure of 717 liquor outlets across the state and warned of strict action against those who violate the new directives.
The state-owned Tamil Nadu State Marketing Corporation (TASMAC), the agency which holds a monopoly on sales of liquor, will be shutting 276 outlets near places of worship, 186 near educational institutions and 255 outlets near bus stations.
A senior TASMAC official on Thursday said that the staff at liquor shops have been instructed to check identity proof, including Aadhaar card, for all customers whose age is in question.
The official also said that the state government is considering a reduction in operational hours.
Currently, the liquor shops across the state operate from 12 noon to 10 pm.
"They are weighing a proposal to move the closing time to 8 pm," he added.
At present, the TASMAC operates a total of 4,765 liquor shops across the state. After the closure of 717 shops, it would come down to 4,048 outlets.
In 2025, the revenue from liquor sales stood at Rs 48,344 crore, which is the second highest after the registration department.
