Government Set to Reap Record-Breaking Dividend of Rs 63,056 Crore from Listed PSUs in FY23

The Indian government is set to receive a significant dividend from listed public sector undertakings (PSUs) in the current fiscal year (FY23). According to media reports, the government is projected to collect a record-breaking net dividend of approximately Rs 63,056 crore from 67 listed PSUs, marking the highest ever dividend received. This amount reflects a 25% increase compared to the dividend of Rs 50,583 crore obtained in FY22 from state-owned companies. Furthermore, the total dividend income for FY23 could potentially rise further, pending the final equity dividend disclosures from PSUs like GAIL (India), Hindustan Copper, and Balmer Lawrie.

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The dividend projected for FY23 is nearly double the amount received in FY2019, reaching Rs 63,056 crore from listed PSUs. This marks a substantial increase compared to the pre-Covid financial year. State-controlled banks and financial institutions are expected to contribute approximately Rs 18,000 crore, a 56% rise from their FY22 contribution of Rs 11,525 crore. Non-financial PSUs such as ONGC, Coal India, NTPC, and PowerGrid Corp are projected to contribute around Rs 45,000 crore, reflecting a 15.4% increase from FY22’s Rs 39,059 crore.

The assessment relies on the provisional and ultimate dividends suggested by publicly listed PSBs for the fiscal year 2023, as stated in their financial reports. The portion of the dividend allocated to the government is determined by its ownership stake in these organizations. It is anticipated that the 67 listed PSUs will collectively provide a dividend of Rs 1.02 lakh crore for FY2023, surpassing the Rs 84,665 crore disbursed in FY22.

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The government’s non-tax revenue for FY24 will see a significant contribution from the PSUs’ dividend payment for FY23. As per the Union Budget 2023-24, it is projected that the government will generate Rs 43,000 crore from dividends and profits of central non-financial PSUs in FY24.