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The Indian government has received a record Rs 740 billion in dividends from Central Public Sector Enterprises (CPSEs) in FY 2024-25, marking a 16% increase from Rs 637 billion in the previous financial year. The latest data from the Department of Investment and Public Asset Management (DIPAM) shows that the dividend collections have exceeded the revised budget estimate of Rs 550 billion for the year. Major Contributors to Government Revenue The highest dividend payer was Coal India Ltd., contributing Rs 102 billion, followed closely by Oil and Natural Gas Corporation (ONGC) with Rs 100 billion. Bharat Petroleum Corporation Ltd. (BPCL) secured the third position with Rs 36 billion. Other key contributors included Telecommunications Consultants (India) with Rs 38 billion and Hindustan Zinc Ltd. with Rs 36 billion. Under the existing rules, PSUs are required to pay a minimum annual dividend of 30% of their profit after tax (PAT) or 4% of their net worth, whichever is higher. For financial sector PSUs, such as non-banking financial companies (NBFCs), the 30% of net profit norm applies, but the net worth criterion has been removed. Higher Targets for FY 2025-26 For the upcoming fiscal year 2025-26, the government has set an even higher target of Rs 690 billion in dividend collections from PSUs. This projection aligns with the Centre’s efforts to boost revenue and maintain fiscal discipline. Additionally, the government expects Rs 2.56 trillion in dividends from the Reserve Bank of India (RBI) and public sector banks, as announced by Finance Minister Nirmala Sitharaman in her Budget speech on February 1. The RBI’s dividend for FY 2024-25 stood at Rs 2.1 trillion, which was double the budgeted estimate for the year. RBI Dividends and Fiscal Management The RBI’s annual dividend is a crucial source of non-tax revenue for the government, helping bridge the fiscal deficit. With a higher-than-expected dividend from the central bank last year, the government was able to maintain fiscal stability while funding key development initiatives. The increase in PSU and RBI dividends reinforces the government's strategy of leveraging state-owned enterprises to generate revenue while ensuring public sector investments remain robust. As dividend targets rise, the performance of major PSUs and financial institutions will play a crucial role in meeting the government's fiscal objectives in the coming years.