RBI gave record dividend to the government...

The lok sabha elections are in their final stages. Five phases of voting have taken place and only the last two phases of voting are left. Meanwhile, the market of speculations and claims and counter-claims is hot. However, in the meantime, new news has come, which although related to economics is politically very sensitive news. This news is related to the formation of the new government. The news has come that the Reserve bank of India i.e. RBI has given a record Rs 2.10 lakh crore to the government as dividend.   What does this mean, and what impact will it have on the future politics of the country? Analysts say that this will act as a 'cushion' for the new government and will help the government in implementing its welfare schemes. 

Income Dividend and Government

Along with the Reserve bank, other PSUs also give a part of their income to the government in the form of dividends. Similarly, the Reserve bank also gives a part of its income to the government every year. In the financial year 2022-23, the Reserve bank gave Rs 87 thousand crores as dividends to the government. Earlier this dividend was around Rs 1 lakh crore. Due to the good income of the Reserve bank this year, the government got more than twice the dividend this year as compared to last year.

This news or dividend has no connection with the elections because as soon as the board meeting of the Reserve bank takes place, the dividend is declared on the basis of the decisions taken in it. This dividend will help the new government to fight the fiscal deficit because the government will have good money to spend. Also, this dividend will help in implementing the upcoming social benefit schemes of the government and other developmental schemes.

Organizations like the international Monetary Fund talk about India's GDP increasing. In terms of GDP growth rate, many organizations report a growth rate of 7 or 7.5 percent. India's economic condition is very good. Also, the announcement of the Reserve Bank is a contribution to the development of the country.