Chandigarh: Punjab Finance Minister Harpal Singh Cheema on Saturday attacked the BJP-led Centre over the 2.87 lakh crore of dividend announced by RBI, alleging that the Narendra Modi government was increasingly treating the RBI like a “personal treasury” to manage its fiscal deficit while denying states their rightful share despite India’s federal structure.
The Reserve Bank of India on Friday announced a record dividend of Rs 2.87 lakh crore to the government for the year ended March 2026, providing a financial boost for the exchequer amid rising import bills and supply chain disruptions due to the West Asia conflict.
Cheema claimed that the Centre has taken nearly Rs 14.29 lakh crore from the RBI since 2014, with more than half of the amount transferred in the last three years alone.
He warned that continuous “extraction” of RBI reserves not only weakens the country’s central bank and long-term financial resilience but also strikes the spirit of cooperative federalism by financially squeezing states.
The finance minister noted that the RBI surplus has been generated through economic activities, transactions and revenue generation occurring across all states. States deserve their rightful share in the funds instead of the Centre keeping the entire amount centralised.
In a video statement, Cheema stated, “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 sharp rise in RBI transfers, Cheema pointed out that it transferred Rs 2.10 lakh crore in 2023-24, Rs 2.68 lakh crore in 2024-25 and now nearly Rs 2.87 lakh crore in 2025-26, making the last three years alone account for more than 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 circumstances or periods of major financial stress.
But now, continuous extraction of RBI surplus has become the norm. This raises serious questions about fiscal management and the long-term institutional strength of the central bank,” he asserted.
Describing the issue as a direct challenge to cooperative federalism, Cheema said if the Union government is facing financial pressures due to global uncertainties and supply shocks, states are battling the same challenges while simultaneously handling welfare responsibilities, inflationary pressures 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 brought into the divisible pool and shared fairly with all states,” he added.
Cheema stated that the Centre’s economic management has “failed” and the country’s economy is under severe stress.
“Despite repeatedly extracting massive funds from the RBI, the BJP government continues burdening ordinary citizens through rising diesel, petrol and domestic cooking gas prices. The Centre is increasingly depending on external financial support while inflation continues to hurt people across the country,” he stated.
Claiming that the Centre’s policies were weakening the nation’s economy and the federal structure, Cheema emphasised that fiscal management cannot 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 called on Prime Minister Narendra Modi to answer the nation on the condition of the economy and explain why fuel and LPG prices continue to rise despite repeated financial extractions from the RBI. “When the country faces economic stress, and citizens are struggling with inflation, the Prime Minister should address the concerns of people instead of avoiding accountability,” Cheema stated.
