New Delhi, May 26
The incremental gain from the higher RBI dividend is expected to partly offset potential shortfalls in tax revenues and nominal GDP growth, a report said on Monday, adding that supported by a robust RBI dividend, system liquidity is likely to improve further.
This marks the third consecutive year where the actual dividend has exceeded the initial budgeted number. This implies an extra fiscal boost of 0.15 per cent of GDP.
Accordingly, “we maintain our FY26 gross FD/GDP target at 4.4 per cent, in line with the budget estimate,” according to the report by Emkay Global Financial Services.
“We expect Q1 FY26E to be in super surplus liquidity (with June tracking Rs 4-4.5 trillion), led by high RBI dividend of Rs 2.68 trillion and a sharp seasonal moderation in currency in circulation (CIC), along with RBI OMOs,” the report added.
The RBI has announced a record dividend of Rs 2.68 trillion to the Centre for FY25, which is around 28 per cent higher than the Rs 2.1 trillion assumed in the FY26 Union Budget.