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The government is set to end the fiscal year 2022-23 (FY23) with around ₹10,000 crore more than revised estimates in terms of dividends from public sector enterprises and other investments. However, in terms of receipts from disinvestment, it could be lower by around ₹18,000 crore, latest data showed.
The Budget for FY23 is estimated to garner ₹40,000 crore from dividend, which was revised to ₹43,000 crore. Latest data show total dividend receipts from CPSEs have already touched ₹52,298.67 crore as on date. Higher dividend payout is critical to limit the fiscal deficit for the current fiscal which is pegged at 6.4 per cent of GDP or ₹17.86-lakh crore.
According to Finance Ministry guidelines, as announced in 2016, a CPSE would pay an annual dividend of 30 per cent PAT (Profit After Tax) or 30 per cent of government’s equity, whichever is higher. However, due account should be taken of cash and free reserves with the CPSE, and accordingly, special dividend would need to be paid to the government, as a return for its equity investments. Further, CPSE with large cash/ free reserves and sustainable profit may issue bonus shares.
“Any case of exception should be explained specifically by the concerned Administrative Ministry/ Department concerned to the Secretary DEA,” the guidelines said.
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Meanwhile, Finance Ministry may see a shortfall in disinvestment receipt. In the Budget for FY23, the government projected receipts from disinvestment at ₹65,000 crore, which was brought down to ₹50,000 crore in the revised estimate. Total receipt, as on date, is ₹31,106.64 crore. With just 11 days in the current fiscal, not much addition is expected in this figure.
Since 2016, the government has given ‘in-principle’ approval for strategic disinvestment of 36 cases of PSEs and/or subsidiaries/ units/ joint ventures of PSEs/ bank. Of the 36 cases, 33 cases are being handled by Department of Investment and Public Asset Management (DIPAM) and 3 cases are being handled by the respective Administrative Ministry/Department.
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