The Centre’s dividend receipts from Central Public Sector Enterprises (CPSEs) and other investments have reached ₹50,000 crore, accounting for 91% of the annual target so far in the current financial year.
In the Union Budget presented on February 1, the government marginally revised its dividend receipt target for CPSEs to ₹55,000 crore, down from the initial ₹56,260 crore estimated in the Budget.
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Strong dividend payouts from CPSEs—excluding those from the Reserve Bank of India (RBI) and state-run financial institutions—have been driven by robust performances across key sectors, including petroleum, energy, mining and commodities.
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Top dividend payers to the government include Coal India (₹8,073 crore), Oil and Natural Gas Corporation (₹6,298 crore), Indian Oil Corporation (₹5,091 crore) and Telecommunications Consultants India (₹3,762 crore).
Higher dividend receipts from CPSEs and the RBI have helped cushion the fiscal deficit in recent years. Notably, the RBI’s record dividend payout of ₹2.11 trillion, far exceeding the Budget estimate of ₹80,000–90,000 crore, has enabled the government to revise the FY25 fiscal deficit target to 4.8% of GDP, down from the earlier estimate of 4.9%.
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For FY26, the Centre has pegged total dividend receipts at ₹69,000 crore, based on expectations of benign crude oil and global commodity prices.
As against the budget estimate of ₹50,000 crore, the dividends from CPSEs and other residual stakes in other firms had fetched the Centre ₹63,749 crore in FY24, the highest-ever dividend collection in a financial year.
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