Budget 2026: Government Eyes RBI Dividend for Revenue Stability

• The government is closely monitoring RBI's dividend calculations for Budget 2026 due to its increasing role in non-tax revenue.
• Non-tax revenue, though smaller than tax revenue, is strategically important and includes dividends from PSUs and RBI.
• RBI dividends have become the largest source of non-tax revenue, showing significant volatility over the past eight years.
• In FY25, RBI dividend reached a record ₹2.68 lakh crore, contributing about 50% to non-tax revenue.
• The surge in RBI dividends helps balance government finances, acting as a shock absorber during tax shortfalls or economic slowdowns.

Why It Matters: RBI's dividend is crucial for government revenue stability, influencing budget strategy and fiscal deficit management.