Govt Likely To Earn Record Rs 63,000 Crore Dividend From Listed PSUs: Report

The proposed final dividend from 67 PSUs indicates that the government is likely to receive a net dividend of approximately Rs 63,056 crore for FY23. which will be the highest-ever dividend. 

The Centre is likely to receive recorcd dividends from listed public sector undertakings (PSUs). According to a report by Business Standard, the proposed final dividend from 67 PSUs indicates that the government is likely to receive a net dividend of approximately Rs 63,056 crore for FY23. which will be the highest-ever dividend. Earlier, the Centre had received the highest dividend of Rs 42,150 crore in FY14. 

According to the report, the projected amount is approximately 25 per cent higher than the dividend of Rs 50,583 crore received in FY22 from listed state-owned companies. Moreover, the total dividend income for FY23 has the potential to increase even further, as PSUs like GAIL (India), Hindustan Copper,, and Balmer Lawrie are still to announce their final equity dividend, the report said. 

The dividend for FY23 is also almost double the Rs 29,049 crore it received from these PSUs in FY19 before the pre-Covid financial year.

According to BS analysis, state-controlled banks and financial institutions are expected to contribute around Rs 18,000 crore for FY23, representing a significant increase of 56 per cent compared to their FY22 contribution of Rs 11,525 crore.

Additionally, non-financial PSUs like Oil and Natural Gas Corporation (ONGC), Coal India, NTPC, and PowerGrid Corp are anticipated to provide approximately Rs 45,000 crore to the government for FY23. This reflects a growth of 15.4 per cent from their FY22 contribution of Rs 39,059 crore, the report said.

The analysis is based on the interim and final dividends proposed by listed PSBs for FY23 as reported in their financial results for the fiscal year.

The government's dividend in PSUs is determined based on its shareholding in these companies. It is projected that the 67 listed PSUs will collectively contribute a total dividend of Rs 1.02 lakh crore for FY2023, surpassing the Rs 84,665 crore distributed in FY22.

A significant portion of this dividend payment from the PSUs for FY23 will be reflected in the government's non-tax revenue for FY24. As per the Union Budget 2023-24, the government is expected to earn dividends and profits amounting to Rs 43,000 crore from central non-financial PSUs in FY24.