Punjab Finance Minister Harpal Singh Cheema has advised not to withdraw too much of RBI’s reserve fund. The Finance Minister has cited the report by RBI that out of the total income of the Central Bank of about ₹ 4 lakh crore, about ₹ 2.87 lakh crore has been transferred to the Central Government. He said that this is one of the highest dividend transfers made to any government since the inception of RBI.
Punjab The Finance Minister said that at a time when the common man is already bearing the burden of high oil prices, inflationary pressures and frequent appeals to save, this extraordinary transfer raises serious concerns. If the central government is facing economic pressure due to global uncertainties and supply constraints, then the states are also facing the same challenges.
It is necessary to reduce the fiscal deficit
Harpal Singh Cheema said that it is necessary to reduce the fiscal deficit. This should not be at the expense of the financial strength and institutional strength of the Reserve Bank of India. In times of crisis, RBI acts as the country’s economic shock absorber and monetary stabilizer. Excessive withdrawal of reserves can weaken the country’s long-term resilience and economic resilience.
Punjab appeals to RBI Governor
Appealing to the RBI leadership to protect the autonomy and credibility of the institution, Minister Harpal Singh Cheema said, “I appeal to the RBI Governor to ensure that the institutional independence, strength and long-term credibility of the Reserve Bank of India remains paramount. India cannot hope to build a strong and long-term credible economy with a weak central bank.”
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