Govt appropriated 99% of RBI’s profits since 2014: Sitaram Yechury

CPI(M) general secretary Sitaram Yechury. File

CPI(M) general secretary Sitaram Yechury hit out at the Centre on August 27 over the record cash transfer by the RBI, alleging the government had “appropriated” 99% of the profits of India’s central banking institution since 2014.

A politburo statement said the RBI was a “lender of the last resort” and condemned the manner in which its reserves were being utilized.

It called upon all Communist Party of India (Marxist) units in the country to organise protests against this “merciless assault” on the economy and people’s livelihood.

The Left party’s reaction came a day after the Reserve Bank of India (RBI) approved the transfer of a record ₹1.76 lakh crore dividend and surplus reserves to the government, boosting the BJP-led regime’s prospect to stimulate the slowing economy without widening fiscal deficit.

“Since 2014, the Modi government has appropriated 99% of RBI’s profits every year to fund its propaganda campaigns. It has now siphoned off ₹1.76 lakh crores ostensibly to recapitalise banks which have been looted by Modi’s cronies.

“The health of our leading navaratnas in the public sector is badly damaged by both, falling demand and because of the financial burden imposed on them by the govt. siphoning off huge dividends. All sections, farmers, workers, MSMEs, youth and women workers have been hurt badly,” Mr. Yechury said in a tweet.

“The economy and people’s livelihoods have never been assaulted so mercilessly as under this government,” the CPI(M) leader said.

The Politburo, in its statement, said while Prime Minister Narendra Modi spoke of respecting “wealth creators”, wealth can be created only when value is generated.

“The vast army of working people today have no work to generate value. All sections, farmers, workers, MSMEs, youth and women workers are being badly hurt,” its said, adding the surplus transfer termed as “dividend” to the government is almost double the previous record of ₹65,896 crores.

The economic slowdown is also compounding the problems of the navaratnas, the politburo said.