With tax collections falling majorly this year, the government now wants public sector enterprises (PSEs) to chip in by paying a higher dividend than they normally do. The government now wants PSEs, to even dip into their reserves and pay a dividend this year, if the need be. In 2018-19, PSEs made a total profit of ₹1.43 trillion, out of which the top 10 profit making PSEs accounted for over 75% share amounting to ₹1.08 trillion. The lack of profit-making PSEs also explains the slowdown in the dividend that has been paid to the government. The need of the hour is to look at these public sector enterprises as investments.

Source: Mint November 15, 2020 16:07 UTC