‘The windfall from the RBI may be used to trim borrowing, help fund 3.3 lakh crore capex plan, capitalize banks and provide fiscal stimulus to some stressed sectors’
NEW DELHI: A record windfall from the RBI under Governor Shaktikanta Das to the tune of Rs 1.76 lakh crore -- higher than the aggregate dividend paid out by the central bank in previous three years -- will give the Modi government ammunition to fight an ever-widening slowdown in the economy by spurring investment and giving sectoral stimulus.
Given the expected revenue shortfall in a slowing economy especially against the aggressive targets set by Finance Minister Nirmala Sitharaman's maiden Budget presented last month, the windfall from the RBI may be used to trim borrowing, help fund Rs 3.3 lakh crore CAPEX plan, capitalize banks and provide fiscal stimulus to some stressed sectors, experts and economists said.
While the finance ministry seeking higher payouts from the RBI was said to be one of the reasons that led to Urjit Patel's abrupt quitting as Governor in December last year, Das-led RBI board has transferred sums that is said to be far more than the stimulus pumped by some G20 nations into their economies during the decade-old global financial crisis.
This comes at a time when the economic growth rate has slumped to a five-year low after accelerating in the first few years of the Modi 1.0 regime. Consumer spending has slowed, private investment hit a bump, the auto sector is facing the worst crisis in two decades leading to tens of thousands of job losses, real estate sector has seen piling of unsold inventories and fast-moving consumers goods (FMCG) companies have seen a decline in volume growth.
While the finance ministry has so far not detailed the blueprint of using the surplus from the RBI, experts said the transfer especially the excess reserve of over Rs 50,000 crore could be utilized for capital formation by investing in infrastructure building or enhancing the lending capacity of banks by recapitalizing them.
هذه القصة مأخوذة من طبعة August 28, 2019 من Millennium Post Kolkata.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة August 28, 2019 من Millennium Post Kolkata.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Bollywood needs new voices, artists from across India
Varun Dhawan said that people in positions of power in Bollywood need to understand the need to change with time
Richa feels like giving up 'every six months'
Chadha and Ali Fazal are promoting their debut production venture 'Girls Will Be Girls'
'Pushpa 2' is most watched film of 2024
The film earned Rs 1,500 crore at the global box office
I am excited to work with Christopher Nolan: Tom Holland
Hollywood star Tom Holland said he is excited to work with Academy Award-winning filmmaker Christopher Nolan for his next movie but doesn't know anything about the project.
Blake Lively accuses Justin Baldoni of harassment & smear campaign
She accused him of embarking on a 'multi-tiered plan' to damage her reputation
Dubai to host India's matches in Champions Trophy
Dubai has been locked in as the neutral venue to host India's matches in the Champions Trophy with a semi-final and the final also to be staged in the UAE if Rohit Sharma and Co qualify for the knockouts.
Second half blitz propels Kerala Blasters to 3-0 win over Mohammedan
Kerala Blasters FC produced a scintillating second-half performance to secure a commanding 3-0 victory over Mohammedan SC in the Indian Super League here on Sunday.
Rohit Sharma should change his tactics, be more attacking batting at No. 6: Shastri
Rohit was expected to reclaim the opener's spot but KL Rahul's 77 in India's win at Perth prompted a rejig of batting order with Rohit moving down to No.6
Mandhana, Renuka blow away West Indies in first ODI
India thrash West Indies by 211 runs in Women's ODI
Root returns to ODI squad for India tour, Champions Trophy
Veteran batter Joe Root's return to 50-over format after more than a year headlined England's squad announcement for the ODI tour to India and the ICC Champions Trophy.