Punjab Finance Minister Harpal Singh Cheema on Saturday intensified his attack on the BJP-led Union Government over the record transfer of nearly ₹2.87 lakh crore from the Reserve Bank of India (RBI) to the Centre, stating that the 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.
Citing official figures showing that the Centre has taken nearly ₹14.29 lakh crore from RBI since 2014, with more than half of the amount transferred in the last three years alone, the Finance Minister warned that continuous extraction of RBI reserves not only weakens the country’s central bank and long-term financial resilience but also strikes at the spirit of cooperative federalism by financially squeezing states.
He said the RBI surplus has been generated through economic activities, transactions and revenue generation taking place across all states, therefore states deserve their rightful share in the funds instead of the Centre keeping the entire amount centralized.
In a video statement,Minister Harpal Singh 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 from 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, Harpal Singh Cheema pointed out that RBI transferred ₹2.10 lakh crore in 2023-24, ₹2.68 lakh crore in 2024-25 and now nearly ₹2.87 lakh crore in 2025-26, making the last three years alone account for more than 53% 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, Minister Harpal Singh Cheema said that 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. Cornering the BJP government over the broader economic situation, Minister Harpal Singh 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.
Minister Harpal Singh Cheema also said that the Centre’s policies were weakening both the economy and the federal structure of the country. “Fiscal management cannot come at the cost of weakening 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 said.
Taking a swipe at Prime Minister Narendra Modi, Harpal Singh Cheema said the Prime Minister must answer the nation on the condition of the economy and explain why fuel and LPG prices continue to rise despite repeated financial extractions from 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,” Minister Harpal Singh Cheema added.