The government has received MVR 246 million (USD 16 million) as dividends from the profits of State Owned Enterprises (SOEs) last year.
The government has received MVR 246 million (USD 16 million) as dividends from the profits of State Owned Enterprises (SOEs) last year.
Statistics published by the Ministry of Finance show that the government received 30 percent of determined value as dividends. This year's budget estimates MVR 775 million (USD 50 million) will be received as dividends.
The estimated dividends from SOEs were not received even at the end of last year. Last year, the government received MVR 710 million (USD 46 million) from profits of SOEs. This is 35 percent of the estimate cited in the budget.
In comparison with the expenses the State makes on SOEs, the returns in dividends are significantly low. Finance Ministry has said that very few companies pay dividends as per regulations.
Besides dividends, there is also a large amount of taxes due to the State from SOEs. As of last year, MVR 880 million (USD 57 million) remains due in taxes and fines.
Over 30 companies are currently being run as SOEs in the country. About 50 percent of these are profitable. In the case of most SOEs, the government needs to spend out of the State budget for its operations. This year alone, about MVR 1 billion has been spent from the budget on the operation of SOEs.
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