Rule 48 — GFR 2017
Original Rule Text
Rule 48
Dividends and Profits. Dividends and
profits including the transfer of surplus
from Reserve Bank of India is a major
component of the non-tax revenues. The
payment of dividends/profits etc. by the
Central Public Sector Enterprises shall
What This Means
This rule explains a significant way the Indian government earns money that isn't from taxes. It highlights that dividends and profits received from government-owned companies, known as Central Public Sector Enterprises (CPSUs), are a major source of this non-tax income. Additionally, the surplus funds transferred by the Reserve Bank of India (RBI) to the government also fall under this important category of revenue.
Essentially, the rule emphasizes that these payments from CPSUs and the RBI are crucial for the government's financial health. It implies a mandatory obligation for these entities to contribute their profits and surpluses to the government's coffers. For government officers, understanding this rule means recognizing where a substantial portion of the government's non-tax revenue comes from, which is vital for budget planning and financial management.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Dividends and profits from government-owned companies (Central Public Sector Enterprises or CPSUs) are a primary source of the government's non-tax revenue.
- 2The annual transfer of surplus funds from the Reserve Bank of India (RBI) also contributes significantly to this non-tax revenue category.
- 3These payments are considered a major and essential component of the government's overall income.
- 4Central Public Sector Enterprises are expected and obligated to make these dividend and profit payments to the government.
Practical Example
Ms. Priya Sharma, Joint Secretary in the Budget Division of the Ministry of Finance, is overseeing the preparation of the annual Union Budget. She instructs her team, including Mr. Alok Kumar, Under Secretary, to meticulously project all revenue streams. Mr. Kumar's task involves estimating the non-tax revenues. He reviews the financial forecasts from major Central Public Sector Enterprises like "Bharat Energy Ltd." and "National Logistics Corp." Bharat Energy Ltd. projects a profit of ₹2,000 crores and, adhering to government guidelines, plans to declare a dividend of ₹600 crores. Similarly, National Logistics Corp. anticipates a dividend payment of ₹250 crores.
Mr. Kumar also factors in the expected surplus transfer from the Reserve Bank of India, which might be estimated at ₹75,000 crores for the upcoming fiscal year. These projected figures are then consolidated into the overall budget document, providing a clear picture of the government's expected income from these vital sources, as mandated by Rule 48.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.