New Delhi, May 24 -- The fiscal deficit of the central government could ease by 20 to 30 basis points from the budgeted level of 4.5 per cent to 4.2 per cent of GDP by the bumper dividend transfer by Reserve Bank of India, according to a report by State Bank of India.

The Union Budget for 2025-26 had projected a dividend income of Rs 2.56 lakh crore from the Reserve Bank and public sector financial institutions.

However, with the latest transfer from the RBI, the actual dividend income will be much higher than budgeted.

The report mentioned that this additional revenue gives the government more fiscal room, either to reduce its deficit or to spend more in priority areas.

SBI said "We expect fiscal deficit to ease by 20 to 30 bps from ...