look news india
Mumbai: As the current financial year i.e. 2023-24 draws to a close, the income through targeted disinvestment has declined significantly, while the income through dividends from non-financial government undertakings has increased significantly.
The government received a record amount of Rs 61,149 crore as dividend during the current financial year from non-financial central public sector enterprises (CPSEs) and undertakings in which the government has a minority stake.
While presenting the interim budget for the next financial year, the government revised the estimate of income through dividend to Rs 50,000 crore. The initial target was kept at Rs 43,000 crore.
According to Finance Ministry data, the amount received by the government so far is a little more than 22 percent of the revised estimate for the current financial year.
The Department of Investment and Public Asset Management (DIPAM) has received a total amount of Rs 75,886 crore. This includes income from disinvestment and income from dividends.
The government has received Rs 14737 crore from disinvestment. Whereas the target has been kept at Rs 51,000 crore.
DIPAM sources said the increase in income by way of dividend was due to good financial performance of various government undertakings.
Despite the Israel–Hamas war, oil companies have been able to maintain their profitability, allowing them to pay good dividends to the government. The performance of the power sector has also been remarkable.
In the last financial year, the government had received Rs 59533 crore from dividend.
There are challenges for the government to sell its stake in public sector undertakings due to huge volatility in the stock market.