(ET)
The finance ministry may not get the windfall gain it has been eyeing from Reserve Bank of India (RBI) reserves with the high-level Bimal Jalan panel looking to tie any such distribution to meaningful utilisation, such as retirement of government debt or recapitalisation of banks. The panel is expected to submit its report on July 16 after a meeting this month to narrow differences.
Transfers envisaged under the current plan under discussion will be too meagre and stretched over a period of time, according to a person aware of the matter. This means the government will not be able to factor in a meaningful amount in its budget for FY20 that is to be presented on July 5. The government was hoping to include the amount in the budget but the delay in the report and the view taken by the committee have dashed those hopes.
