<p class="title">The Centre is demanding millions of dollars in dividends from 12 reluctant state companies to make up for an expected tax revenue shortfall this fiscal year, as a slump in economic growth risks New Delhi overshooting its fiscal deficit target.</p>.<p class="bodytext">The demand has been made following a finance ministry assessment on October 25 of the financial health of 14 state companies, including top miner NMDC Ltd and trading firm MMTC Ltd, according to a government document reviewed by Reuters.</p>.<p class="bodytext">The ministry asked 12 of the companies to payout between 30% and as much as 100% of their 2016/17 or 2017/18 net profit in dividends, share buybacks or bonus shares. The other two companies were exempted.</p>.<p class="bodytext">All state companies evaluated by the government sought exemptions. The finance ministry, NMDC and MMTC did not reply to Reuters emails seeking comment.</p>.<p class="bodytext">The country's federal budget is under pressure this year following an unexpected slump in economic growth, which slipped to its lowest level in three years in the three-months ending June, the first quarter of the 2017/18 fiscal year. As of September, the half-way mark for the fiscal year, the budget deficit had reached Rs 4.99 trillion or more than 91% of its full-year target.</p>.<p class="bodytext">Surjit Bhalla, a member of the prime minister's economic advisory council, told Reuters in an interview in October that the government wanted to stick with a budget deficit target of 3.2%. The government's revenues have also been hit by a sharply lower dividend from the central bank. </p>.<p class="bodytext">The assessment by the finance ministry did not specify the combined amount of payouts expected of the 12 companies. But New Delhi has budgeted $21.86 billion in payouts from all state companies this fiscal year, slightly down on the previous fiscal year.</p>
<p class="title">The Centre is demanding millions of dollars in dividends from 12 reluctant state companies to make up for an expected tax revenue shortfall this fiscal year, as a slump in economic growth risks New Delhi overshooting its fiscal deficit target.</p>.<p class="bodytext">The demand has been made following a finance ministry assessment on October 25 of the financial health of 14 state companies, including top miner NMDC Ltd and trading firm MMTC Ltd, according to a government document reviewed by Reuters.</p>.<p class="bodytext">The ministry asked 12 of the companies to payout between 30% and as much as 100% of their 2016/17 or 2017/18 net profit in dividends, share buybacks or bonus shares. The other two companies were exempted.</p>.<p class="bodytext">All state companies evaluated by the government sought exemptions. The finance ministry, NMDC and MMTC did not reply to Reuters emails seeking comment.</p>.<p class="bodytext">The country's federal budget is under pressure this year following an unexpected slump in economic growth, which slipped to its lowest level in three years in the three-months ending June, the first quarter of the 2017/18 fiscal year. As of September, the half-way mark for the fiscal year, the budget deficit had reached Rs 4.99 trillion or more than 91% of its full-year target.</p>.<p class="bodytext">Surjit Bhalla, a member of the prime minister's economic advisory council, told Reuters in an interview in October that the government wanted to stick with a budget deficit target of 3.2%. The government's revenues have also been hit by a sharply lower dividend from the central bank. </p>.<p class="bodytext">The assessment by the finance ministry did not specify the combined amount of payouts expected of the 12 companies. But New Delhi has budgeted $21.86 billion in payouts from all state companies this fiscal year, slightly down on the previous fiscal year.</p>