RBI transfers Rs33K crore as surplus profit to govt

The Reserve Bank of India has chipped in with its might to fill the governments fiscal deficit. In a major fillip to the governments fund mobilisation programme,the RBI has transferred Rs 33,010 crore as surplus profit to the government for the year ended June 2013. This is more than a 100 per cent jump over Rs 16,010 crore that the RBI transferred in the previous year.

This is the highest amount the RBI transferred to the government,barring 2007 when it gave Rs 45,719 crore as surplus profit. However,out of this,Rs 34,308 crore was accounted by the money generated by its stake sale in State Bank of India. The RBI transferred Rs 15,009 crore in 2010-11,Rs 18,759 crore in 2009-10 and Rs 25,009 crore in 2008-09.

The RBI contribution has come at a time when achieving the fiscal deficit target of 4.8 per cent of GDP in fiscal 2014 look increasingly challenging. The accounts for April-June doesnt paint an encouraging picture,with the fiscal deficit already at 48.4 per cent of budget estimate.

This is due to both the poor revenue growth which has lagged budgeted targets and strong expenditure growth,which has accelerated above budget estimates, said a Morgan Stanley note.