The Aam Aadmi Party (AAP) has expressed serious concerns regarding the alleged utilisation of the Reserve Bank of India’s (RBI) surplus by the BJP-led Central Government. Punjab’s Finance Minister and AAP leader Harpal Singh Cheema has claimed that the Centre treats the RBI as its “personal treasury.” He made these remarks following the RBI’s announcement of a record dividend transfer amounting to Rs 2.87 lakh crore for the fiscal year ending March 2026.

Cheema’s allegations suggest that the Centre has drawn nearly Rs 14.29 lakh crore from the RBI since 2014, with more than half of this amount extracted in the last three years. He termed this practice as undermining the federal structure of India, where every state contributes to national development and revenue generation. He questioned why states were being denied their legitimate share from such substantial fiscal gains.

Rising Concerns Over Federalism

The finance minister highlighted the rise in annual transfers from the RBI, indicating a significant increase in the amounts being allocated to the Centre in recent years. He noted that the RBI transferred Rs 2.10 lakh crore in 2023-24, followed by Rs 2.68 lakh crore in 2024-25, culminating in the latest nearly Rs 2.87 lakh crore for 2025-26. This trend, he argued, shows that over 53 per cent of all transfers since 2014 occurred in just the past three years.

Cheema raised concerns about the implications of these unprecedented transfers for the fiscal management of the country. He argued that such withdrawals from RBI reserves were traditionally reserved for times of exceptional financial stress. The continuous extraction of surplus funds, he claimed, raises troubling questions about the long-term strength of the central bank and its ability to effectively manage the nation’s finances.

He further pointed out that states, which are currently grappling with economic uncertainties, inflation pressures, and rising welfare obligations, should not bear the fiscal burden while the Centre retains the entire financial windfall. He asserted that the extraordinary gains from the RBI ought to be shared equitably among all states.

Call for Clarity on Economic Strategy

Cheema has also called for greater transparency in the government’s economic management, noting that despite the significant transfers from the RBI, citizens continue to face high costs for fuel and cooking gas, as well as persistent inflation. He termed the situation an economic crisis, stating that the withdrawal of Rs 2.87 lakh crore from state collections poses a serious risk to the nation’s fiscal integrity.

Further, he warned that the current approach risks dismantling India’s federal structure. He urged Prime Minister Narendra Modi and the BJP to clarify their stance on the nation’s economic framework, expressing concern that the system appears to be deteriorating gradually.

In light of these issues, Cheema expressed apprehensions regarding the financial health of the RBI. He emphasised that while reducing the fiscal deficit is crucial, it should not compromise the strength of the central bank. The RBI, he noted, functions as a crucial economic stabiliser, especially during crises, and excessive extraction of its reserves could threaten the long-term resilience of the Indian economy.

Cheema has concluded his statements by calling on the leadership of the RBI to safeguard the institution’s autonomy. He maintains that a robust economy cannot be achieved in a climate where the central bank is weakened and states remain financially constrained.

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