Government Expects CPSEs Dividends To Overshoot Budget Estimates

The government expects dividend inflows from central public sector enterprises (CPSEs) to exceed budgeted estimates this fiscal, government sources told NDTV Profit.

Officials added that for financial year 2027, the Centre may set a 10–12% higher dividend target while maintaining a conservative stance amid global uncertainty.

For financial year 2026, the Centre had projected dividend receipts of about Rs 69,000 crore. However, officials expect this to be passed.

Higher dividends are expected to provide crucial fiscal support at a time when the fiscal deficit has reached 36.5% of the fiscal year 2026 target in the first half of the year. The continued strength in non-tax revenue is likely to offer the Centre much-needed fiscal cushioning through the remainder of the fiscal year.

Non-tax revenue surged 30.5% to Rs 4.66 lakh crore in first half.

In fiscal 2025, the government received a record Rs 74,000 crore in dividends from CPSEs, sharply higher than Rs 63,749 crore in financial year 2024.

The highest contributors to the government's kitty were Coal India Ltd. at Rs 10,252 crore, followed by Oil and Natural Gas Corp. at Rs 10,002 crore and Bharat Petroleum Corp. at Rs 3,562.47 crore. Telecommunications Consultants (India) at Rs 3,761.50 crore and Hindustan Zinc Ltd. at Rs 3,619.06 crore were also among the top payers.

Each PSU is required to pay a minimum annual dividend of 30% of its PAT or 4% of its net worth. For PSUs operating in the financial sector, such as non-banking financial companies, the minimum annual dividend has been set at 30% of PAT.