FinMin may raise FY25 CPSE dividend target in full budget

The Finance Ministry is expected to increase the dividend estimates from Central Public Sector Enterprises (CPSEs) by Rs 5,000 crore to approximately Rs 53,000 crore for the current fiscal year in the upcoming full budget presentation in July. The interim budget for 2024-25 had initially projected dividend estimates from non-financial CPSEs at Rs 48,000 crore for the fiscal year. An official mentioned that the revised estimates are based on a better understanding of dividends following updates in December 2023 and January 2024. \r

The government's dividend receipts in a fiscal year include both interim dividends from state-owned companies throughout the year and final dividends from the previous fiscal. As of now, the government has received Rs 4,837.25 crore in dividends from CPSEs for the current financial year, which includes a special dividend of Rs 3,443 crore from Telecommunications Consultants India Limited (TCIL), a public sector enterprise under the Ministry of Telecom.