Punjab Finance Minister Harpal Singh Cheema on Saturday criticised the BJP-led Central government over the Rs 2.87 lakh crore dividend announced by the RBI. He claimed that the Narendra Modi government was treating the RBI like its “personal treasury” to handle the fiscal deficit instead of ensuring states received their rightful share.
The Reserve Bank of India on Friday announced a record dividend of Rs 2.87 lakh crore to the Centre for the financial year ending March 2026. The amount is expected to provide a major financial boost to the government amid rising import bills and supply chain disruptions caused by the West Asia conflict.
Cheema alleged that the Central government has taken nearly Rs 14.29 lakh crore from the RBI since 2014, with over half of the amount transferred during the last three years alone.
He said continuous “extraction” of RBI reserves weakens the country’s central bank and affects long-term financial stability. He also alleged that it goes against the spirit of cooperative federalism by putting financial pressure on states.
Cheema said the RBI surplus is generated through economic activities, transactions and revenue generated across all states. He argued that states deserve their fair share instead of the Centre keeping the entire amount.
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 of such extraordinary gains? The rights of the states must be protected, and the Central Government should not deprive states of their rightful share.”
Highlighting the rise in RBI transfers, Cheema said the RBI transferred Rs 2.10 lakh crore in 2023-24, Rs 2.68 lakh crore in 2024-25 and nearly Rs 2.87 lakh crore in 2025-26. He said the last three years alone account for over 53 per cent of the total transfers made since 2014.
“The scale and frequency of these transfers are unprecedented. Earlier, such extraordinary withdrawals from RBI reserves were seen only during exceptional situations or periods of major financial stress. But now, continuous extraction of RBI surplus has become normal. This raises serious questions about fiscal management and the long-term institutional strength of the central bank,” he said.
Calling it a direct challenge to cooperative federalism, Cheema said if the Centre is facing financial pressure due to global uncertainties and supply disruptions, states are also dealing with the same problems while handling welfare schemes, inflation 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 included in the divisible pool and shared fairly with all states,” he added.
Cheema further alleged that the Centre’s economic management has failed and that the country’s economy is under severe stress.
“Despite repeatedly taking massive funds from the RBI, the BJP government continues burdening ordinary people through rising diesel, petrol and cooking gas prices. The Centre is increasingly depending on external financial support while inflation continues to affect people across the country,” he said.
Claiming that the Centre’s policies are weakening both the economy and the federal structure, Cheema said fiscal management should not come at the cost of weakening the RBI’s institutional strength, reserve buffers and policy flexibility.
“India cannot aspire to build a strong and resilient economy with a weakened central bank and financially constrained states,” he added. Cheema also called on Prime Minister Narendra Modi to explain the condition of the economy and clarify why fuel and LPG prices continue to rise despite repeated financial transfers from the RBI.
“When the country is facing economic stress and citizens are struggling with inflation, the Prime Minister should address the concerns of the people instead of avoiding accountability,” Cheema said.
Also read: Congress, AAP target BJP over rising petrol, diesel prices
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