Government to Receive Rs 2.56 Lakh Crore as Dividend From RBI and Public Sector Banks in FY26

The government has projected a dividend income of ₹2.56 lakh crore from the Reserve Bank of India (RBI) and public sector financial institutions for FY2025-26, according to the Budget documents.
The amount in the budget document is more than the revised estimate of 2.34 trillion rupees for the current fiscal year. The RBI board will approve the payout for this year at its meeting in May. The huge transfer of funds will help the government to narrow its fiscal deficit to 4.4 per cent of the GDP.
The RBI pays an annual dividend to the government from the profits it earns on its foreign exchange operations and investments in the domestic and foreign markets. It keeps some for its reserves and transfers the rest to the government.
In the current financial year (FY2024-25), receipts from dividends and surpluses of the RBI, nationalized banks, and financial institutions are estimated at ₹2.34 lakh crore, which is ₹1,410 crore higher than the previous estimates.
The documents further revealed that the central government’s total receipts from ‘dividends from public sector enterprises and other investments’ are projected to rise to ₹3.25 lakh crore, up from ₹2.89 lakh crore in the previous fiscal year.
During her Budget speech, Finance Minister Nirmala Sitharaman stated that the total receipts (excluding borrowings) for FY2025-26 are estimated at ₹34.96 lakh crore, while the total expenditure is projected at ₹50.65 lakh crore.
The net tax receipts are estimated at ₹28.37 lakh crore, and the fiscal deficit is projected at 4.4% of GDP for the upcoming financial year.
To finance the fiscal deficit, the government plans to raise ₹11.54 lakh crore through net market borrowings from dated securities in 2024-25. The remaining financing is expected to come from small savings and other sources. The gross market borrowings are estimated at ₹14.82 lakh crore.
Sitharaman also emphasized the government’s commitment to maintaining fiscal discipline, stating that efforts will be made to ensure the central government debt remains on a declining path as a percentage of GDP over the coming years.