Disinvestment Target of FY25 to be set at Rs 50,000 crore by Govt

New Delhi: The Budget 2024 has revised its target of FY 2025 to Rs 50,000 crore, an increase of 67% from the previous fiscal year’s target of Rs 30,000 crore. As per revised budget estimates the government has initially set up the target of Rs 51,000 crore in FY24 but has only achieved 24.5 per cent of Rs 12,500 crore as of 3 January 2024. It is practically impossible to meet the target as of 31 March 2024.

The government has already sanctioned Rs 44,060 crore as dividends from public sector enterprises. Higher tax revenues including dividends anticipated from RBI and other public sector lenders are grossly emphasized to settle down the revenue shortfall from disinvestments. This can induce to revise the fiscal deficit target to 5.8% from 5.9% earlier.

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The government is expecting to gain a Rs 1.02 trillion dividend from the RBI and other state-run banks in FY25 while it also expects a Rs 48,000 crore dividend from the public sector companies in the same fiscal year.

Till now the government has managed to raise the funds through an offer for sale [OFS] through Coal India, NHPC Ltd, Rail Vikas Nigam Ltd, and SJVN Ltd. The disinvestment target has been shortfall many times except in FY18 and FY19.

 

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Despite this, healthy dividends, profits, and revenues are predominated under the government’s consolidated fund. The public sector entities are prevalent to dominate the stock market exchange, generating a record high profit ratio.

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