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Disinvestments slow, but govt keeps earning dividends from state-run firms

It has never happened that the budget estimate for dividends from such companies has failed

Divestment, privatisation, stake sale, disinvestment

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The rise in dividends has been flagged internally by the Finance Ministry’s department of disinvestment and asset management as a welcome development

Subhomoy Bhattacharjee New Delhi

3 min read Last Updated : Jan 24 2024 | 4:23 PM IST

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There has hardly been any disinvestment of state-run companies in Financial Year 2023-34 (FY24), but dividends from such firms more than made up for government receipts.

FY24 will probably have the lowest collection in disinvestment in a decade. In the same year, receipts from dividends soared to a record high.

Compared to the Rs 8858.55 crore of disinvestment as capital receipts, the Finance Ministry has got Rs 43,692 crore as dividends from companies it holds stakes in. The Reserve Bank of India’s (RBI) share of Rs 87,416 crore is excluded here.

Of course, there are differences in the accounting for

Topics : Union budgets India's budget deficit Disinvestment strategic disinvestment dividends Finance Ministry State Budgets

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