Jaitley likely to bank on PSU dividends to meet fiscal deficit

Govt's fiscal deficit target unlikely to be met through Budget cuts alone

Grappling with a tough fiscal deficit target of 4.1 per cent of gross domestic product (GDP), amid an expected tax revenue shortfall of Rs 1.05 lakh crore, Finance Minister Arun Jaitley might look at higher dividend from public sector undertakings (PSUs) compared to last year. This is apart from the government eyeing deep Budget cuts across ministries and departments. Multiple sources told Business Standard Jaitley was likely to ask PSU chiefs to use their cash piles to either boost public investment or partly offset the expected shortfall in tax receipts. According to ...