The central government will get Rs 2.1 trillion (Rs 2,10,874 crore) as a surplus for the fiscal year 2023–2024, according to a decision made by the Reserve Bank of India’s Central Board.
The transferable surplus for 2023–24 was determined using the Economic Capital Framework (ECF), which the Reserve Bank adopted on August 26, 2019, under the expert committee’s recommendations to review the RBI’s existing ECF.
The Committee recommended that, by the Contingent Risk Buffer (CRB), risk provisioning be kept between 5.5 and 6.5 percent of the RBI’s balance sheet.
The Board determined that the CRB should remain at 5.5% of the Reserve Bann’s balance sheet size to stimulate growth and overall economic activity throughout the accounting years 2018–19 to 2021–22 due to the current macroeconomic conditions and the Covid-19 epidemic.
In FY23, once the economy began to grow again, the CRB was increased to 6%. In light of the economy’s ongoing strength and resilience, the Board decided to increase the CRB to 6.5% for FY24. The Board then approved the national government to receive Rs 2,10,874 crore as a surplus for the 2023–2024 fiscal year.