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Govt dividend windfall: 5th year of record collections expected
30 Dec
Summary
- Government dividend collections may hit a new high in 2025-26.
- Dividends from state-owned firms have consistently exceeded targets.
- Strong CPSE performance offsets weak disinvestment revenue.
The Indian government anticipates a significant boost in dividend collections from its non-financial public sector enterprises for the fifth year running, with projections indicating a new record high for fiscal year 2025-26. These collections are expected to surpass initial budgeted targets, providing a crucial financial cushion.
As of the current fiscal, dividend collections have already reached Rs 44,862 crore, with a substantial portion typically received in the March quarter. This trend follows a record Rs 74,129 crore garnered in 2024-25, significantly exceeding the budgeted Rs 56,260 crore and revised estimate of Rs 55,000 crore. This consistent overperformance highlights the strong financial health of CPSEs.
The robust dividend inflows play a vital role in compensating for the persistently weak disinvestment revenue, which currently stands at Rs 8,768 crore for the fiscal. While the strategic sale of IDBI Bank is underway, its proceeds are anticipated in the next fiscal's first quarter. Lower global crude oil prices are expected to bolster the earnings of state-owned oil companies, ensuring sustained dividend payouts.
