Budget 2026: CPSE dividends to bolster Centre’s finances in FY26 and FY27
Stake sales in FY27 will focus largely on public sector banks and the disinvestment of IDBI Bank is likely to be completed in the first quarter of FY27 now.
- Jan 15, 2026,
- Updated Jan 15, 2026 12:37 PM IST
The Centre is likely to continue leaning heavily on dividends from central public sector enterprises (CPSEs), which are likely to remain a major source of revenue, outpacing stake sale proceeds in FY27 as well.
According to sources, dividends from CPSEs are likely to be earmarked at about Rs 75,000 crore in the next fiscal, a tad higher than Rs 69,000 crore budgeted for this fiscal.
Dividends from CPSEs have remained robust at over Rs 50,000 crore in the last few years and have exceeded the Budget estimates. Thus far this fiscal, total dividend receipts from PSUs amount to Rs 49,596.25 crore, while in FY24, it was a record Rs 74,128.63 crore.
Stake sales in FY27 will focus largely on public sector banks and the disinvestment of IDBI Bank is likely to be completed in the first quarter of FY27 now. Miscellaneous capital receipts, which include disinvestment proceeds, amounted to Rs 23,716.56 crore or 50% of the targeted Rs 47,000 crore in the first eight months of the fiscal between April and November 2025. Of this, solely disinvestment proceeds are at Rs 8,768 crore.
The IDBI stake sale could garner about Rs 40,000 crore. Official sources maintained that the stake sale is at an advanced phase and is likely to be completed soon but have till now not indicated any timeline for completion of the transaction.
While a delay in the IDBI disinvestment will impact the Centre’s revenue math for this fiscal, it will bolster it in FY27.
Till now, it is expected that the Centre’s math is on track to meet the fiscal deficit of 4.4% of the GDP in FY26. However, lower tax revenues, particularly collections from both income tax and corporate tax as well as goods and services tax and customs duty have been lower than expected and there could be a shortfall in collections.
Of the Centre’s gross tax revenue estimated at Rs 42.7 lakh crore this fiscal, corporate tax collections are estimated at Rs 10.82 lakh crore and income tax at Rs 14.38 lakh crore. Revenue from customs duty is estimated at Rs 2.4 lakh crore and from GST at Rs 11.78 lakh crore.
However, as per CGA data, the Centre had met 49.1% of its net tax revenue of Rs 28.37 lakh crore between April and November this fiscal.
The Centre is likely to continue leaning heavily on dividends from central public sector enterprises (CPSEs), which are likely to remain a major source of revenue, outpacing stake sale proceeds in FY27 as well.
According to sources, dividends from CPSEs are likely to be earmarked at about Rs 75,000 crore in the next fiscal, a tad higher than Rs 69,000 crore budgeted for this fiscal.
Dividends from CPSEs have remained robust at over Rs 50,000 crore in the last few years and have exceeded the Budget estimates. Thus far this fiscal, total dividend receipts from PSUs amount to Rs 49,596.25 crore, while in FY24, it was a record Rs 74,128.63 crore.
Stake sales in FY27 will focus largely on public sector banks and the disinvestment of IDBI Bank is likely to be completed in the first quarter of FY27 now. Miscellaneous capital receipts, which include disinvestment proceeds, amounted to Rs 23,716.56 crore or 50% of the targeted Rs 47,000 crore in the first eight months of the fiscal between April and November 2025. Of this, solely disinvestment proceeds are at Rs 8,768 crore.
The IDBI stake sale could garner about Rs 40,000 crore. Official sources maintained that the stake sale is at an advanced phase and is likely to be completed soon but have till now not indicated any timeline for completion of the transaction.
While a delay in the IDBI disinvestment will impact the Centre’s revenue math for this fiscal, it will bolster it in FY27.
Till now, it is expected that the Centre’s math is on track to meet the fiscal deficit of 4.4% of the GDP in FY26. However, lower tax revenues, particularly collections from both income tax and corporate tax as well as goods and services tax and customs duty have been lower than expected and there could be a shortfall in collections.
Of the Centre’s gross tax revenue estimated at Rs 42.7 lakh crore this fiscal, corporate tax collections are estimated at Rs 10.82 lakh crore and income tax at Rs 14.38 lakh crore. Revenue from customs duty is estimated at Rs 2.4 lakh crore and from GST at Rs 11.78 lakh crore.
However, as per CGA data, the Centre had met 49.1% of its net tax revenue of Rs 28.37 lakh crore between April and November this fiscal.