The Centre’s dividend receipts from public sector enterprises (CPSEs) have exceeded the budget target (revised estimate) of Rs 55,000 crore by 34% to reach nearly Rs 75,000 crore in 2024-25, setting a new record.
The dividend receipts from CPSEs – an important source of non-tax revenues- in FY25 is 16% more than the previous high of Rs 63,749 crore in FY24.
Robust dividends from energy sectors like Coal India and Oil & Natural Gas Corporation (ONGC) have boosted these non-tax receipts.
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Coal India is the top dividend payer to the government with Rs 10,252 crore compared with Rs 9,532 crore in the previous year. Similarly, top state-run explorer ONGC has paid Rs 10,002 crore compared with Rs 7,594 crore in FY24.
With margins improving due to lower crude prices during the year, the petroleum sector as a whole has paid Rs 22,146 crore to the government in FY25, 14% more than Rs 19,353 crore in FY24.
In the budget presented on February 1, the government marginally revised down dividend receipts from CPSEs to Rs 55,000 crore from Rs 56,260 crore in the budget estimate. However, the receipts turned out to be nearly Rs 19,000 crore more than the revised estimate.
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 second highest in any financial year.
For FY26, the Centre has estimated dividend receipts at Rs 69,000 crore assuming benign crude and other global commodity prices.
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Higher dividend receipts from CPSEs and the Reserve Bank of India have cushioned the government’s fiscal deficit in recent years. Thanks to the RBI dividend of Rs 2.11 trillion as against the budget estimate of Rs 80,000-90,000 crore, the fiscal deficit for FY25 has been pegged at 4.8% of the GDP in a revised estimate from 4.9% estimated earlier. With higher dividends from CPSEs and likely lower capex than the target, the actual fiscal deficit may be even lower at 4.7% in FY25.
in November 2024,
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