Non-Tax Revenue

RBI'S GROWING FISCAL ROLE: OPPORTUNITIES, RISKS AND IMPLICATIONS FOR CENTRAL BANK INDEPENDENCE

The RBI approved a record ₹2.87 lakh crore surplus transfer to the Union Government for FY26. Driven by foreign exchange gains and US Treasury yields, this massive non-tax revenue provides vital fiscal space but raises critical concerns over central bank independence, fiscal federalism, and the risks of fiscal dominance.