Govt’s dividend from public corporations drops by 35 percent

KATHMANDU: The government’s earnings from dividends paid by public corporations have dropped by 35 percent in a single fiscal year.

According to the Economic Survey Report presented in Parliament by Finance Minister Bishnu Paudel on Thursday, the government received Rs 13.75 billion in dividends in fiscal year 2079/80, but only Rs 8.83 billion in 2080/81.

Among the operating public corporations, 28 reported profits, 15 incurred losses, and 2 remained closed during the period.

The net profit of public corporations in FY 2080/81 stood at Rs 42.62 billion, reflecting a 12.88 percent decline compared to the previous fiscal year. Even among the profitable corporations, net profit decreased by 11.5 percent.

On the other hand, loss-making corporations reported a combined net loss of Rs 3.63 billion, which is an 8.65 percent increase compared to the previous year.

The dividend-to-total share investment ratio stood at 2.2 percent for FY 2080/81.

As of the review period, the Government of Nepal’s total investment in public corporations reached Rs 73.93 billion, with Rs 364.86 billion in share investment and Rs 339.7 billion in loan investment.