India is expected to surpass its FY24 target for dividends from state-run firms by at least $1.4 billion
![India is expected to surpass its FY24 target for dividends from state-run firms by at least $1.4 billion India is expected to surpass its FY24 target for dividends from state-run firms by at least $1.4 billion](https://bigbreakingwire.in/wp-content/uploads/2024/01/mark-804936_19207038792449716565819.jpg)
India is likely to exceed its fiscal year 2024 target for dividends from state-run firms by a significant margin, with projections indicating a surplus of at least $1.4 billion, according to a government source. This anticipated performance in dividend collections is expected to mitigate the impact of a potential shortfall from equity sales in state-owned enterprises, which might fall short by over 40% of the targeted amount. The source suggests that the dividend receipts could hover between 550 to 600 billion rupees, surpassing both the current fiscal year’s goal and the 595 billion rupees garnered in the previous year.
While the government grapples with potential challenges in equity sales, it remains optimistic about meeting its broader fiscal objectives. Despite the anticipated shortfall in share sales, the government aims to achieve its fiscal deficit target of 5.9% of the GDP for the 2023-24 fiscal year. Furthermore, economist Aditi Nayar from ICRA adds a positive perspective, forecasting that the government’s net tax revenues could surpass the fiscal year’s budgetary targets by a substantial 300 to 400 billion rupees.
In summary, India’s fiscal landscape appears to be navigating through a blend of challenges and opportunities. While there are concerns regarding equity sales, the buoyant performance in dividend receipts and optimistic revenue projections provide a glimmer of hope for the nation’s fiscal health in the upcoming year.
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