With an aim to contain the country’s fiscal deficit within target limit at 4.8% of GDP in current fiscal, Minister of State for Finance J D Seelam has stated that the government is working towards meeting the disinvestment target of Rs 40,000 crore by selling off stake in state-owned firms in the current fiscal. Further, the minister added that the government is doing its best effort to check fiscal deficit and to garner the revenue amount, it is also demanding higher dividends from public sector units (PSUs) and government banks.
The government has so far only managed to raise Rs 3,000 crore from disinvestments in seven PSUs, including Power Grid Corporation of India, Hindustan Copper, National Fertilisers and MMTC. The government has planned to sell stakes in PSUs such as Indian Oil Corporation and Engineers India, BHEL and Hindustan Aeronautics (HAL) in the next two months. The government will also float some PSU shares through the Central Public Sector Enterprises ETF, which is estimated to have a corpus of Rs 3,000 crore.
India’s fiscal deficit touched around 94 percent of the budgeted target in the first eight months of the current fiscal. However, containing fiscal deficit has now become a tough task for the government amid poor revenue realization and tardy progress of the disinvestment programme. The government has already taken a number of measures including banning government departments from holding meetings in 5-star hotels among others to cut government spending in non-critical areas.
The government has so far only managed to raise Rs 3,000 crore from disinvestments in seven PSUs, including Power Grid Corporation of India, Hindustan Copper, National Fertilisers and MMTC. The government has planned to sell stakes in PSUs such as Indian Oil Corporation and Engineers India, BHEL and Hindustan Aeronautics (HAL) in the next two months. The government will also float some PSU shares through the Central Public Sector Enterprises ETF, which is estimated to have a corpus of Rs 3,000 crore.
India’s fiscal deficit touched around 94 percent of the budgeted target in the first eight months of the current fiscal. However, containing fiscal deficit has now become a tough task for the government amid poor revenue realization and tardy progress of the disinvestment programme. The government has already taken a number of measures including banning government departments from holding meetings in 5-star hotels among others to cut government spending in non-critical areas.
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