The Romanian government plans to secure RON 8 billion (EUR 1.6 billion) in dividends from state-owned companies in 2024 by mandating a minimum distribution of 90% of net profits to the budget, Profit.ro reported. 

This measure, which extends to national companies, enterprises with full or majority state capital, and autonomous public administrations, will be enforced through the government's representatives in general meetings of shareholders and boards of directors. 

The decision maintains last year's policy, replacing the standard 50% dividend distribution with a higher threshold. Certain companies with specific legal provisions governing profit allocation will be exempt. 

Additionally, in well-justified cases, the government, with approval from the Ministry of Finance, may authorize a lower dividend distribution. Companies such as Transgaz and Nuclearelectrica have previously benefited from such exemptions.

The government anticipates that maintaining a 90% dividend distribution will stabilize non-tax budget income.

According to budget forecasts, state dividend revenues are expected to increase gradually over the next few years. The government projects RON 8.24 billion in 2026, RON 8.84 billion in 2027, and RON 9.46 billion in 2028.

iulian@romania-insider.com

(Photo source: Adrian825/Dreamstime.com)