Millennium Post
Business

PSUs pip dividend estimate by Rs 14,320 cr to Rs 88,188 cr

As per the budget document presented in Parliament, public sector enterprises, including banks, are expected to contribute Rs 88,188 crore in the form of dividend and profit to the government in the current financial year. Originally, the government had expected to get Rs 73,866 crore, of which Rs 29,870 crore had been targeted from PSUs and Rs 43,996 crore from banks. The government estimates it will get Rs 77,229 crore from dividend and profits in 2014-15.

Finance Minister P Chidambaram had repeatedly asked PSUs to increase spending or dole out higher dividend to shareholders. The government is the majority owner of PSUs.

Maharatna firm Coal India alone provided Rs 19,000 crore to the government as dividend and dividend distribution tax.

The higher dividend collection helped the government to restrict the fiscal deficit to 4.6 per cent of GDP in the current financial year when the PSU disinvestment programme did not take off as planned. The government has so far raised Rs 3,500 crore from disinvestment in 2013-14 and revised its target to Rs 16,027 crore from Rs 40,000 crore.

The government has sought Parliament’s nod for supplementary spending of Rs 46,227.57 crore in the current fiscal that includes net cash outgo of Rs 25,567.97 crore, largely on account expenditure on petroleum subsidy, army and food.

Finance Minister P Chidambaram tabled supplementary demands for grants in Parliament. The demands are spread over a large number of categories. Cash outgo apart, over Rs 20,658 crore is accounted for under the Technical Supplementary head.

Of the net cash outgo, as much as Rs 10,041.72 crore will be towards petroleum subsidies to oil marketing companies for under-recoveries on account of selling petroleum products below cost, and project management expenditure.

It has also sought Rs 4,821 crore for Defence Services (Army) for meeting additional expenditure arising out of courts orders and other items. Food and public distribution department has been given additional subsidy of 1,877.52 crore.

The government has also sought nod for Rs 1,766 crore for providing Superannuation pension, family pension and defined contribution pension scheme-NPS.

The government has sought Parliament nod for Rs 1,130 crore for meeting expenditure under New and Renewable Energy Fund and enhancing Capital outlay of Solar Energy Corporation of India among others.

Chidambaram had vowed to bring down fiscal deficit at 4.8 per cent of the GDP in the current financial year, down from 4.9 per cent in 2012-13.
Next Story
Share it