Government may receive first tranche of RBI surplus this calendar

New Delhi: The Finance Ministry is likely to receive the first tranche of the RBI's surplus money towards December after its central board discusses and approves the report finalised by the Bimal Jalan panel.

The six-member panel led by former RBI Governor Jalan, constituted to assess the adequate size of capital reserves that the RBI should hold, has finalised the report which is likely to be submitted to the RBI central board meeting later this month for discussion and approval.

Economic Affairs Secretary Atanu Chakraborty is the government director on the RBI Central Board. The government is hopeful of receiving the first tranche of the RBI surplus in this calendar year, said a source.

The Central Board of the RBI, once the report is submitted, will discuss and may approve it in the meeting scheduled this month or may do so in the next meeting and once the report is approved, the board can deliberate and finalise on the exact amount of transfer. The Board is required to meet normally once every month.

With the economy facing a slowdown in key sectors - auto, real estate, FMCG where the growth has fallen in the last six months as rural consumption and demand declined, the government will be looking at any revenue source to step up public investment.

To make matters worse, direct tax collections have grown only by 9.7 per cent in the first quarter of the current fiscal year, against the Budget projection of 18.6 per cent over the actual figures of 2018-19.

Growth in GST collection till July, too, has been only 9 per cent as against 18 per cent estimated in the Union Budget. Both are expected to stay flat unless the economy gathers steam.