Chandigarh, May 23: The central government must divide its recent historic ₹2.87 lakh crore Reserve Bank of India dividend with state governments to maintain fiscal fairness across the country, Punjab Finance Minister Harpal Singh Cheema declared Friday.
The minister expressed deep concern over the unprecedented capital transfer, which represents the bulk of the central bank’s ₹4 lakh crore total income. Speaking in Chandigarh, Cheema asserted that the windfall should be distributed through the divisible pool of taxes rather than remaining solely with the Union Government, especially as states navigate identical global economic pressures and inflationary challenges.
Beyond federal revenue sharing, the finance minister cautioned that draining central bank reserves risks stripping the nation of its primary monetary safety net during future financial crises.
“While reducing the fiscal deficit is important, it must not come at the cost of weakening the financial strength and institutional firepower of the Reserve Bank of India,” Cheema stated.
Cheema maintained that current global currency pressures require the central bank to hold a more robust financial cushion rather than transferring historic sums to New Delhi. He noted that regular citizens are already managing high fuel costs and inflation, making the massive transfer a point of serious public concern.
The minister concluded with a direct appeal to institutional leaders to protect the fiscal health and neutral standing of the apex bank.
“I urge the RBI Governor to ensure that the institutional independence, strength and long-term credibility of the Reserve Bank of India remain paramount,” Cheema affirmed. “India cannot aspire to build a strong and resilient economy with a weakened central bank.”
