homeeconomy NewsDifficult to estimate quantum of disinvestment proceeds in FY24, says Finance Ministry

Difficult to estimate quantum of disinvestment proceeds in FY24, says Finance Ministry

Responding to a question on how the delay in privatisation is likely to impact the fiscal deficit target, Karad said fiscal deficit depends upon many factors such as total expenditure, total non-debt receipts and GDP among others.

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By Sapna Das  Dec 18, 2023 10:40:31 PM IST (Published)

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Difficult to estimate quantum of disinvestment proceeds in FY24, says Finance Ministry
The Union Finance Ministry on Monday (December 18) said it is difficult to anticipate the quantum of actual proceeds from disinvestment in the current fiscal year.

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"Disinvestment is an ongoing process, and execution of disinvestment transactions depends upon administrative feasibility, market conditions, domestic and global economic outlook, and investor interest. In view of this, it is difficult to anticipate the quantum of actual proceeds from disinvestment during the current fiscal,” Minister of State (MoS) for Finance Bhagwat Kishanrao Karad told Lok Sabha in a written reply.
The budget had pegged disinvestment receipts in the current fiscal at 51,000 crore. The Department of Investment and Public Asset Management (DIPAM) has realised about 10,050 crore through disinvestment in various Central Public Sector Enterprises (CPSEs) as of December 13, 2023, the Minister added in his response. 
Moreover, the Centre is likely to achieve the fiscal deficit target of 5.9% in the current fiscal.
Responding to a question on how the delay in privatisation is likely to impact the fiscal deficit target, Karad said fiscal deficit depends upon many factors such as total expenditure, total non-debt receipts and GDP among others.
"Tax and non-tax receipts constitute a major proportion of the government's total non-debt receipts. The government is likely to achieve the fiscal deficit target of 5.9 percent of the GDP in the current financial year 2023-24," Karad added.
Since 2016, the government has given 'in-principle' approval for strategic disinvestment of 36 cases of PSEs and subsidiaries of PSEs/Banks. 33 out of these 36 cases are being handled by DIPAM with the remaining being handled by the respective Administrative Ministries and Departments.
The state of affairs of the 33 cases handled by DIPAM are as follows: Strategic disinvestment transactions have been completed in 10 cases, eight transactions are in CPSE-to-CPSE space while carrier Air India and NINL have been privatised. 
(With inputs from agencies)

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