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• The government is hoping to mop up additional Rs 7,000 crore in dividend collections in FY12. Sources say the finance ministry may mull hike in taxes to boost revenues. CNBC-TV18's Aakansha Sethi reports.The government has been keen that PSUs give high dividend. It had held meetings with PSUs across the board as well as PSB. It has finally managed to get Rs 7,000 crore from these PSUs, above what was earlier decided as the dividend amount to bridge the deficit gap.

• Sources say Coal India is one of the companies that is likely to use about Rs 50,000 crore cash on its balance to give out these extra dividends.But more importantly, the government has admitted that the Rs 40,000 crore divestment target is impossible to meet. The new number that it is working with is Rs Rs 10,000 crore. However, this will not mean any additional borrowing because the borrowing done for this fiscal, factors in the Rs 10,000 crore number and if the government manages to meet this target then it will not need additional borrowing.

• The final decision on the divestment plan will be taken in the next month or so once the government is surer of the tax revenues. Remember, both indirect and direct tax revenues have moderated. Direct tax revenues are expected to miss the target by about Rs 30,000 crore and indirect tax will just about meet the target. So the government is waiting for more certainty on that. As a result, PSU buybacks and SUTTI plan is now on the backburner with the Cabinet not taking any decision on it and now it is back to old FPO plan.

• The government is once again looking at the ONGC FPO, which it expects will hit the market in the last 10 days of March, that is, depending on a final call. Also the BHEL issues, not yet decided if FPO or auction, is likely in FY12 itself.Meanwhile, sources say GAAR is likely to be introduced in Budget 2013. A standing committee likely to give DTC report in the budget session and the DTC bill might discussed in the Monsoon session of Parliament.

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