India's new government is set to receive a substantial financial boost with a $25 billion dividend from the Reserve Bank of India (RBI), equivalent to INR2.11 lakh crore. This significant sum presents the government with a choice: either to increase spending or to focus on reducing the fiscal deficit. Analysts from S&P and economists suggest that using the RBI dividend to reduce the fiscal deficit could lead to rating support for India. Economists also recommend aiming for faster fiscal consolidation, a lower debt-to-GDP ratio, and reduced market borrowing. Despite the potential benefits, Fitch has noted that the RBI dividend will have a limited impact on medium-term fiscal consolidation.
#RBI #dividend to have limited impact on medium-term #FiscalConsolidation: #Fitch https://t.co/572JnzNJ79
#LeadStoryOnET | More #PrivateEquity funds headed to #India armed with big money to bag deals https://t.co/qKJm4mQEyK
#Opinion | "The new government would be wise to prioritise reducing the #fiscaldeficit with the surplus dividend from #RBI. Spending, if any, from this amount should be on capex" ✍️ @monikahalan | #HTPremium https://t.co/y8GiceGc8i
The Reserve Bank's INR2.11 lakh dividend to the government signals a push for deficit reduction post-COVID. Can this help trigger a sovereign upgrade? Bhaskar Dutta analyses. https://t.co/Xw5pL1RKH9
#LeadStoryOnET | #RBI's mega cheque presents a delicious #dilemma to the new #IndianGovt coming to power https://t.co/3xpQP0NHeY
#LeadStoryOnET | RBI's mega cheque presents a delicious dilemma to new govt https://t.co/3xpQP0NHeY
How will the government use the bumper RBI dividend of Rs 2.1 lakh crore! Economists say India should aim for faster fiscal consolidation, lower debt-to-GDP ratio, and reduced market borrowing. Here's more⏬ https://t.co/NVn1vNkBQx By @meghnamittal23 | #RBI #Dividend #India
India's new government will be spoilt for choice with $25 billion extra in kitty via @SwatiBhat22 and @aftabahmed00 for @Reuters https://t.co/SKnNK2gJDR
⚠️ INDIA'S NEW GOVERNMENT WILL BE SPOILT FOR CHOICE WITH $25 BILLION EXTRA IN KITTY Full Story → https://t.co/OxQbkz0BWG India's incoming government will be greeted with a $25 billion cheque from the central bank, giving it the option to either boost spending or narrow the… https://t.co/8Dwq7pK8Ix
#India to get #rating support if it uses #RBI #dividend to reduce #FiscalDeficit: S&P analyst https://t.co/VInAlXj7Kv
India To Get #RatingSupport If It Uses #RBI Dividend To Reduce #FiscalDeficit: S&P Analyst #RBIDividend #Business #Finance #Banking https://t.co/pZOQqliPbV