Chandigarh: Punjab finance minister Harpal Singh Cheema on Saturday again slammed the BJP-led Centre over the "record transfer" of nearly Rs 2.87 lakh crore from the Reserve Bank of India (RBI) to the Centre, stating that the Modi government was increasingly treating the RBI like a "personal treasury" to manage its fiscal deficit while denying states their rightful share despite India's federal structure.
Allegations of Unprecedented Transfers
Citing official figures showing that the Centre has taken nearly Rs 14.29 lakh crore from RBI since 2014, with more than half of the amount transferred in the last three years alone, Cheema "warned" that continuous extraction of RBI reserves not only weakens the country's central bank and long-term financial resilience but also strikes at the spirit of cooperative federalism by financially squeezing states.
He said the RBI surplus has been generated through economic activities, transactions and revenue generation taking place across all states; therefore, states deserve their rightful share in the funds instead of the Centre keeping the entire amount centralised.
Video Statement Highlights
In a video statement, Cheema said, "The financial structure of the country is based on federalism. Every Indian contributes to the economy and every state contributes to national growth and revenue generation. Then why are states denied their rightful share from such extraordinary gains? The rights of the states must be protected, and the Centre should not deprive states of their rightful share."
Highlighting the sharp rise in RBI transfers, Cheema pointed out that RBI transferred Rs 2.1 lakh crore in 2023-24, Rs 2.68 lakh crore in 2024-25 and now nearly Rs 2.87 lakh crore in 2025-26, making the last three years alone account for more than 53% of the total transfers made since 2014.
Concerns Over Fiscal Management
"The scale and frequency of these transfers are unprecedented. Earlier, such extraordinary withdrawals from RBI reserves were seen only during exceptional circumstances or periods of major financial stress. But now, continuous extraction of RBI surplus has become the norm. This raises serious questions about fiscal management and the long-term institutional strength of the central bank," he asserted.
Describing the issue as a direct challenge to cooperative federalism, Cheema said if the Centre is facing financial pressures due to global uncertainties and supply shocks, states are battling the same challenges while simultaneously handling welfare responsibilities, inflationary pressures and rising expenditure burdens.
"Federalism cannot mean that states bear the burden while the Centre keeps the entire RBI windfall. Extraordinary gains of this nature should be brought into the divisible pool and shared fairly with all states," he added.
