Informist, Tuesday, May 21, 2024
--Source: Govt may up FY25 PSU dividend receipts aim by 50 bln rupees
--CONTEXT: Budget pegged FY25 dividend from PSU cos at 480 bln rupees
--Source: Govt may up FY25 aim for RBI, PSU bks' surplus transfer
By Sagar Sen
NEW DELHI – With public sector companies having posted strong financial results for the year ended Mar 31, the finance ministry is considering increasing the target for dividend receipts from them by 50 bln rupees to 530 bln rupees in 2024-25 (Apr-Mar), a senior finance ministry official said. The Interim Budget had projected dividend receipts from public sector companies at 480 bln rupees in 2024-25, down from 500 bln rupees in the revised estimates for 2023-24. The new government is likely to present the full Budget for 2024-25 in July.
The government may also increase the target for surplus transfer from the Reserve Bank of India and dividends from public sector banks and financial institutions, which was projected at 1.02 trln rupees in the Interim Budget. The official, however, declined to put a figure on the surplus transfers from the RBI.
Analysts have projected surplus transfer from the RBI alone at over 1.0 trln rupees. The central bank is likely to announce the surplus transfer to the government this month.
Public sector companies have done well so far in 2023-24. According to an Informist analysis, of the state-owned companies that have announced results for 2023-24, the net profit of the top 10 companies had increased 136.8% on year to 1.6 trln rupees.
Public sector companies pay dividends to the government during a financial year, which includes interim dividends for that particular year as well as final dividends for the previous fiscal. So far in the current financial year, public sector companies have paid 48.37 bln rupees to the government as dividends, according to the latest data available with the Department of Investment and Public Asset Management. State-owned companies had paid a dividend of 637 bln rupees in 2023-24.
The government has been pushing public sector companies to pay higher dividends. According to a 2016 notification, public sector companies need to pay an annual dividend of 30% of profit after tax or 30% of government's equity, whichever is higher.
In a General Election year, the incumbent government presents an Interim Budget to Parliament. Once the new government assumes office, it presents a regular full Budget. In an Interim Budget, a Vote on Account is passed for a part of the fiscal year, pending the passage of the regular Budget. End
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Informist, Tuesday, May 21, 2024
--Source: Govt may up FY25 PSU dividend receipts aim by 50 bln rupees
--CONTEXT: Budget pegged FY25 dividend from PSU cos at 480 bln rupees
--Source: Govt may up FY25 aim for RBI, PSU bks' surplus transfer
By Sagar Sen
NEW DELHI – With public sector companies having posted strong financial results for the year ended Mar 31, the finance ministry is considering increasing the target for dividend receipts from them by 50 bln rupees to 530 bln rupees in 2024-25 (Apr-Mar), a senior finance ministry official said. The Interim Budget had projected dividend receipts from public sector companies at 480 bln rupees in 2024-25, down from 500 bln rupees in the revised estimates for 2023-24. The new government is likely to present the full Budget for 2024-25 in July.
The government may also increase the target for surplus transfer from the Reserve Bank of India and dividends from public sector banks and financial institutions, which was projected at 1.02 trln rupees in the Interim Budget. The official, however, declined to put a figure on the surplus transfers from the RBI.
Analysts have projected surplus transfer from the RBI alone at over 1.0 trln rupees. The central bank is likely to announce the surplus transfer to the government this month.
Public sector companies have done well so far in 2023-24. According to an Informist analysis, of the state-owned companies that have announced results for 2023-24, the net profit of the top 10 companies had increased 136.8% on year to 1.6 trln rupees.
Public sector companies pay dividends to the government during a financial year, which includes interim dividends for that particular year as well as final dividends for the previous fiscal. So far in the current financial year, public sector companies have paid 48.37 bln rupees to the government as dividends, according to the latest data available with the Department of Investment and Public Asset Management. State-owned companies had paid a dividend of 637 bln rupees in 2023-24.
The government has been pushing public sector companies to pay higher dividends. According to a 2016 notification, public sector companies need to pay an annual dividend of 30% of profit after tax or 30% of government's equity, whichever is higher.
In a General Election year, the incumbent government presents an Interim Budget to Parliament. Once the new government assumes office, it presents a regular full Budget. In an Interim Budget, a Vote on Account is passed for a part of the fiscal year, pending the passage of the regular Budget. End
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.