The Government is set to conduct a comprehensive review of its disinvestment targets for the fiscal year 2023-24, addressing the existing shortfall in the targets set during the previous fiscal year.
Disinvestment, a strategic financial maneuver involving the selling or liquidation of government-owned assets, is a pivotal aspect of the country’s fiscal policy. The primary objective is to reduce government ownership and control over specific businesses or industries. However, the current fiscal year has seen a notable discrepancy between the set target and the actual realization.
The Union Budget for FY 2023-24 initially set a disinvestment target of Rs 51,000 crore. Regrettably, as of now, only Rs 10,051 crore has been realized, prompting a thorough reassessment of the strategies in place.
To bridge the gap, the government has already raised Rs 10,051 crore through the disinvestment of various Central Public Sector Enterprises (CPSEs). However, recognizing the urgent need to expedite the process and meet the disinvestment goal for the current fiscal year, the finance ministry is exploring additional avenues.
One approach involves leveraging dividends from non-financial CPSEs to partially compensate for the shortfall. Encouragingly, with one quarter left in the fiscal year, the government has already achieved the budget estimate of Rs 43,000 crore from CPSE profits, providing a degree of respite.
The exact amount to be covered by dividends is yet to be determined, but it is expected to contribute significantly to narrowing the disinvestment gap. The government remains committed to achieving its fiscal targets and will make informed decisions based on the Budget Committee’s deliberations.
Looking ahead, the estimated disinvestment target for the fiscal year 2024-25 will be thoroughly discussed and determined during the Budget Committee deliberations, ensuring a strategic and balanced approach to financial management.
