Budget 2017: Jaitley may have to account for lower dividends from PSUs

Cash reserves down 34% since March 2014 after they stepped up payouts

As Finance Minister Arun Jaitley rises to present the 2017-18 Budget later this week, he might need to temper his expectations of dividend income from central public sector undertakings (PSUs) in the next financial year. 

The government’s aim to achieve its revenue target has put pressure on PSUs to increase their dividend, which has led to a steady depletion of their cash reserves in the past three years. 

Analysts expect central PSUs to now go slow on dividend pay-out, in the current and next financial years, to conserve cash to funding their growth. 

In the past, top dividend-paying PSUs such