Why the fiscal math may not add up
Poor dividends from the RBI and risks to growth can upset the fisc
When the Centre’s demonetisation move to crack down on black money unfolded, many believed that an inconspicuous windfall gain was in the offing. If part of the old notes did not come back into circulation, the reduction in the RBI’s liabilities could result in a one-time special dividend to the Centre, lowering fiscal deficit. Instead, the RBI has robbed the Centre of nearly ₹35,000 crore of reve...
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