Govt to receive Rs 1.02 lakh cr as dividend from RBI, PSBs in FY25

Current Context: The government has projected a dividend income of Rs 1.02 lakh crore from the Reserve Bank of India (RBI) and public sector financial institutions for the financial year 2025.

• This is slightly lower than the estimated Rs 1.04 lakh crore that the government is set to earn in the current fiscal year.
• The increase in the current fiscal year’s estimate is due to the RBI paying a dividend of Rs 87,416 crore in May last year.
• In addition to the dividends from the RBI and public sector banks, the government also expects to receive dividends from Central Public Sector Enterprises (CPSEs).
• The total dividend income from the RBI, public sector banks, and CPSEs is projected to be Rs 1.50 lakh crore for the next financial year.
• This higher dividend income, along with improved tax mobilisation, is expected to help the government achieve its fiscal deficit glide path.
• The government aims to reduce the fiscal deficit to below 4.5% by 2025-26 from 5.1% of GDP in 2024-25.

Question:

Q.1 What is the projected dividend income from the RBI and public sector financial institutions for the financial year 2025?
a. Rs 1.04 lakh crore
b. Rs 1.02 lakh crore
c. Rs 1.50 lakh crore
d. Rs 87,416 crore