Chandigarh, May 23: The Union Government’s unprecedented extraction of a nearly ₹2.87 lakh crore dividend from the Reserve Bank of India has triggered sharp institutional pushback from Punjab, with Finance Minister Harpal Singh Cheema affirming Saturday that the policy financially squeezes individual states.
According to regional financial data, the latest transfer means that more than 53% of all central bank capital withdrawals over the past decade have taken place in just the last three years. Cheema noted that the centralized retention of these multi-lakh crore windfalls directly harms state administrations that are actively balancing heavy public welfare costs against persistent inflationary pressures.
The narrative centers on a perceived imbalance where local economies bear the operational brunt of market inflation while the central government absorbs the institutional safety buffers of the apex bank.
“Federalism cannot mean that states bear the burden while the Centre keeps the entire RBI windfall,” Cheema stated. “Extraordinary gains of this nature should be brought into the divisible pool and shared fairly with all states.”
The finance minister asserted that the current financial strategy indicates a deeper reliance on external capital reserves to manage federal balance sheets. Cheema maintained that stripping the central bank of its long-term financial resilience reduces its capability to act as an economic shock absorber during future currency fluctuations or global market disruptions.
He further noted that despite these massive capital infusions, ordinary citizens have received no relief from rising petrol, diesel, and liquid petroleum gas costs.
“The scale and frequency of these transfers are unprecedented,” Cheema declared, calling for greater transparency regarding national economic health. “The rights of the states must be protected and the Central Government should not deprive states of their rightful share.”
