The Centre’s dividend receipts from the Central Public Sector Enterprises (CPSEs) and other investments have fetched Rs 48,376 crore or 86% of the annual target so far in the current financial year.
Going by the performance of the CPSEs so far, the dividend receipts from these companies is poised to exceed Rs 60,000 crore for the second year in a row in FY25 as against the target of Rs 56,260 crore.
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As against the Budget estimate of Rs 50,000 crore, the dividends from CPSEs and other residual stakes in other firms had fetched the Centre Rs 63,749 crore in FY24, the highest in any financial year.
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These CPSE dividends, other than from the Reserve Bank of India and state-run financial institutions, have been driven by robust performance in a wide spectrum of sectors, including petroleum, energy, mining and commodities.
Top dividend payers to the government include Coal India (Rs 8,073 crore), Oil and Natural Gas Corporation (Rs 6,298 crore), Indian Oil Corporation (Rs 5,091 crore) and Telecommunications Consultants India (Rs 3,762 crore).
Higher dividend receipts from CPSEs will further cushion the government’s fiscal deficit in FY25. Thanks to the dividend of Rs 2.11 trillion from the RBI as against the Budget estimate of Rs 80,000-90,000 crore, the government has pegged the fiscal deficit for FY25 at 4.9% of GDP from 5.1% estimated in the interim Budget.
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Going by the spending pace which moderated compared to last year, the fiscal deficit may be lower than 4.9% despite a likely lower nominal GDP size than anticipated in the Budget.
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