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.