The Reserve Bank of India's surplus transfers offer the government much-needed fiscal space, yet they are not without challenges. Critically examine the implications of the RBI's surplus transfers to the government. (Answer in 150 words)

RBI, as the uber within rules, RBI Act, transfers its surplus buffer amount to government of India - when makes a savanna income source for government. Surplus source: Profit from printing money Arbitrage and Profit from lending to commercial banks. Gives govt fiscal space. i Adds to government resources → Breadth of economy. ii Fiscal stimulus for welfare projects. iii Balance fiscal deficit and CAD with reserves. iv Capital expenditure (= LLI taken crore) → adds favoring as debt already 92.7% of GDP. Challenges with surplus transfer: i No fixed annuement - differs every year as per economic vicissitudes. ii Unaccounted money - slack of oversight & plurality by parliament. iii Reduces the fiscal autonomy of RBI - 'dependent'. iv Fiscal transparency - Public money (ackR7).

— Deeksha Chourasiya · AIR 44