In an exclusive discussion at CNBC-TV18 Budget 2025 – The Verdict, Finance Secretary Tuhin Kanta Pandey and DIPAM Secretary, Sanjay Chawla, shared insights on the remarkable growth in dividend receipts for FY26, shedding light on the government’s strategy and the outlook for future payouts.CompanyValueChange%ChangePandey emphasised that the government’s approach to public sector enterprises (CPSEs) focuses on consistency, not maximising dividends.“We are looking at consistent dividend, not maximisation of dividend, because if you maximise, you essentially evacuate funds that could otherwise contribute to the company’s growth,” Pandey said.
This strategy ensures that while dividends remain substantial, they do not hamper the long-term development of the CPSEs.Highlighting the growth in profitability, Pandey confirmed that CPSEs have consistently exceeded their dividend targets over the past few years. The dividend target for this year is ₹69,000 crore, and the government remains optimistic that this goal will be met.Meanwhile, Chawla underscored the positive trend, stating, “The public sector dividends were almost ₹1.25 lakh crore last year, and we are seeing sustained growth of 15-20% year on year.”He projects that this will lead to a payout of ₹1.40-1.50 lakh crore in the current year, with about half of the total dividends going to the government and the remainder being shared with the people of India, the true shareholders.The growth reflects not only the health of CPSEs but also the government’s commitment to ensuring that citizens benefit from the continued success of public sector enterprises.(Edited by : Ajay Vaishnav)First Published: Feb 3, 2025 11:11 PM IST
