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Contribution of the Central Public Sector Enterprises to GDP and Central Exchequer

The share of ˜gross value addition™ in Central Public Sector Enterprises (net value addition + depreciation) as percent of Gross Domestic Product (at current market price) stood at 5.67 percent in 2011-12 against 5.44 percent in 2010-11. If, however, the under-recoveries of oil marketing companies (amounting to Rs. 55041 crore in 2011-12 and 37190 crore in 2010-11) are included, then the share of gross value addition of all Central Public Sector Enterprises (CPSEs) in GDP goes up to 6.29 percent in 2011-12 and 6.78 percent in 2010-11.

As per the Public Enterprises Survey 2011-12, tabled in Parliament recently, CPSEs contribute to the Central Exchequer by way of dividend payment, interest on government loans and payment of taxes & duties. There was, however, a significant increase in the total contribution of CPSEs to the Central Exchequer during the year, which increased from Rs. 1,56,751 crore in 2010-11 to Rs. 1,60,801 crore in 2011-12. This was, primarily due to increase in contribution towards ˜corporate tax™ and ˜excise duty™ which increased from Rs. 40,324 crore to Rs. 44,358 and Rs. 57,755 crore to Rs. 61,165 crore respectively in 2010-11 and 2011-12. There was, however, a decline in ˜custom duty™, ˜other duties & taxes™ and ˜dividend tax™ during the year as compared to the previous year. There was also a marginal decline in payment of central sales tax by the CPSEs.

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