In a fiscal update, the Department of Investment and Public Asset Management revealed that dividends and disinvestment receipts for the current fiscal year may reach ₹55,000 crore, surpassing the initial budget target of ₹43,000 crore. The dividend collection stands at ₹43,843 crore, exceeding the set target, while disinvestment revenue remains relatively low at ₹10,052 crore.
However, due to the anticipated shortfall in divestment proceeds, mainly from the IDBI Bank strategic sale process extending to 2024-25, the combined disinvestment and dividend target for 2023-24 may be revised from the budgeted ₹94,000 crore. The government had previously reported that the surplus dividend might not fully compensate for the disinvestment gap.
This development is not expected to significantly impact the government’s fiscal calculations, given that the combined target represents less than 3.5% of the budgeted non-debt receipts for the fiscal year. While there is a remote possibility of dividend receipts exceeding the previous fiscal year’s level of ₹58,988 crore, challenges in the oil sector due to global crude oil price volatility pose uncertainties.
Large state-run oil firms, major contributors to such non-tax revenue, may face obstacles in providing significant dividends this year. The article highlights that dividends from other sectors, such as power, may remain robust.
