The entire discussion is with respect to Indian context

Make assumptions, if necessary, a More often than not, good economics gets sidelined while political populism takes centre stage in public policy making. If the recent dialogues between the Central Government and RBI are any indications, one such situation is, probably, in the making in our country. The government is exploring various financing options to stimulate the domestic economy. Particularly, in. the run-up to the general election of 2019, it finds a last minute spending spree may strengthen its electoral prospects. The government considers grabbing a big chunk of the RBI's capital reserves, which amount to approximately