PSU dividends double in the recent years

The data confirms that dividend payments from Public Sector Undertakings (PSUs) to the Central Government have nearly doubled since 2020. Here’s a breakdown

Key Insights

As of July 20, 2025, multiple reports indicate that PSU dividends to the Centre have “almost doubled” since 2020, with over 40% of that increase driven by just five fuel-sector PSUs

In FY 2023-24, the government received a record ₹74,000 crore in dividends-a substantial rise attributed to improved corporate earnings and revised dividend policies

The government is now urging PSUs to increase payouts by ~25% in FY 2024-25, and a “firm-by-firm” review suggests that total PSU dividends may exceed targets by around 16% in FY2025-26

What This Means for the Centre

Fiscal Support:The surge in PSU dividends provides a stronger revenue stream for the Union Budget-helping reduce borrowing needs and enabling more spending flexibility

Capital ExpenditureWith predictable cash flows, the government can pursue infrastructure investments without over-reliance on disinvestment or debt.

Policy LeverageSteadier PSU performance and higher returns empower the Centre to push for better dividend policies and financial discipline across PSUs.

Broader Context

The PSU dividend uptick reflects stronger corporate governance, profitability in strategic sectors, and government-mandated payout minimums.

The Centre’s push for higher and regular dividend payouts is part of broader fiscal consolidation efforts global|

• amid
• economic
• uncertainties

Bottom Line

Yes, PSU dividends sent to the Centre have roughly doubled since 2020.

They play a critical role in boosting government revenue, reducing deficit pressure, and supporting fiscal stability.