The government on Thursday projected a dividend income of Rs 1.02 trillion from the RBI and public sector financial institutions in the next financial year.

       The government is set to earn a higher dividend of Rs 1.04 trillion in the current fiscal against the Budget Estimate of Rs 48,000 crore.

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       The current financial year estimate exceeded the Budget Estimate as RBI paid a dividend of Rs 87,416 crore in May last year.

       In the previous financial year, the government mobilised Rs 39,961 crore from RBI and public sector financial institutions.

       Meanwhile, the government estimated Rs 43,000 crore as dividend payments from Central Public Sector Enterprises (CPSEs). Other investments also rose to Rs 50,000 crore during the current fiscal.

       In all, the government projected to mobilise Rs 1,54,407 crore as dividend from the RBI, public sector banks and CPSEs in the current fiscal.

       For the next financial year, it is slightly lower at Rs 1.50 trillion from CPSEs, RBI and banks.

       The higher dividend from banks and financial institutions, apart from improvement in tax mobilisation, would help achieve a fiscal deficit glide path.

       As per the fiscal consolidation roadmap, the government aims to reduce the fiscal deficit to below 4.5 per cent by 2025-26 from 5.1 per cent of GDP in 2024-25.

       The government had estimated the fiscal deficit to come down to 5.4 per cent in the next financial year beginning April 1, 2024.

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       (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)