Deploy record RBI dividend to hand hold states: Bhanumurthy

The Union government should deploy the record FY24 dividend worth Rs 2.10 lakh crore received from the Reserve Bank of India to hand hold the states fiscally said N R Bhanumurthy Vice-chancellor, Dr BR Ambedkar School of Economics University. In a pre-budget roundtable of Fortune India, Bhanumurthy said, “SMEs, states, savings, statistics and structural transformation are the five “S” on which the central government must focus in the upcoming budget. I think the focus should not be limited only to the budget. What the government plans overall for the next five years is much more important for the businesses and the budget which will be presented for the next nine months.”

“I expect continuity from the vote on account. I think the central government must hand hold the states much more than they are doing right now. RBI profits should be shared with the states for capex. Out of the allocation made to the states, 99.9% has been utilised. That shows that there is absorptive capacity,” Bhanumurthy added.