New Delhi, May 23 -- Economists and market experts believe the Reserve Bank of India's record surplus transfer of Rs 2.87 lakh crore to the central government will provide some relief to the government's finances at a time when subsidy pressures are expected to rise due to the ongoing West Asia crisis, while also boosting liquidity in the banking system.

The RBI on Friday announced a record dividend payout to the government for FY26, higher than the Rs 2.69 lakh crore transferred in the previous year.

Reacting to the development, DK Srivastava, Chief Policy Advisor at EY India, said the higher surplus transfer could help the government partly manage rising subsidy expenses.

"This is a marginal increase in non-tax revenues which will be...