Another Bumper RBI Dividend Likely in FY27, Disinvestments Seen at Rs 80,000 Crore
The Indian government is poised to receive another robust dividend from the Reserve Bank of India (RBI) in the fiscal year 2026-27 (FY27), as per the latest Union Budget estimates. The budget projects a dividend of Rs 3.16 lakh crore from the RBI, public sector banks, and financial institutions, contributing significantly to non-tax revenues. Concurrently, disinvestment receipts are expected to rise sharply to Rs 80,000 crore, reflecting a strategic push towards asset monetisation.
Record Surplus and Revised Estimates
The RBI's surplus, which reached a record high of Rs 2.69 lakh crore in FY26, forms the bulk of this dividend. For the current fiscal year, the revised estimate (RE) has been increased to Rs 3.05 lakh crore from the earlier projection of Rs 2.56 lakh crore. This adjustment underscores the central bank's strong financial performance and its pivotal role in bolstering government revenues.
Disinvestment Targets and Asset Monetisation
Disinvestment receipts are anticipated to surge from Rs 33,837 crore in FY26 to Rs 80,000 crore in FY27. According to Madhavi Arora, Chief Economist at Emkay Global Financial Services, this projection assumes the completion of key disinvestment initiatives, including the sale of IDBI Bank and a stake in LIC. The government's commitment to asset monetisation is further emphasised by Economic Affairs Secretary Anuradha Thakur, who highlighted ongoing efforts to establish a robust pipeline for such transactions.
In her budget speech, Finance Minister Nirmala Sitharaman announced plans to accelerate the recycling of real estate assets owned by central public sector enterprises (CPSEs) through dedicated Real Estate Investment Trusts (REITs). This move aims to enhance liquidity and unlock value from underutilised assets.
Non-Tax Revenue and Economic Implications
Dividends from public sector enterprises (PSEs) and other investments are projected at Rs 75,000 crore for FY27, slightly higher than the Rs 71,000 crore estimated for the current fiscal. Combined with RBI dividends and disinvestment proceeds, these components constitute the Centre's non-tax revenue, which is estimated at Rs 6.66 lakh crore for 2026-27. This figure represents 23% of the Centre's net tax revenue, highlighting its critical importance in funding government expenditures.
RBI's Financial Dynamics
Over recent years, RBI dividends have become an increasingly vital revenue source for the government. In FY26, the central bank transferred a record sum, partly due to substantial foreign currency sales that supported the rupee. However, for the current fiscal year ending March 2026, gains from currency sales are expected to be lower, with RBI's foreign currency sales from April to November 2025 down 44% year-on-year to $98 billion.
Despite this, the RBI is anticipated to report a significant rise in interest income, driven by its purchase of government bonds worth several lakhs of crores during FY26 to enhance banking system liquidity. This strategic move is likely to offset reduced gains from foreign exchange interventions, ensuring continued strong dividend payouts.
The government's focus on maximising non-tax revenues through dividends and disinvestments reflects a broader strategy to strengthen fiscal stability and support economic growth. As these projections unfold, they will play a crucial role in shaping India's financial landscape in the coming years.
