Now Reading: PSU dividends, stake sales push Centre near Rs 80,000 crore target
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PSU dividends, stake sales push Centre near Rs 80,000 crore target
The Centre has raised Rs 61,636 crore from disinvestment, dividends and asset monetisation this fiscal, after LIC's offer for sale alone fetched over Rs 31,000 crore. The government is close to its…
The Story in Brief
The Centre has raised Rs 61,636 crore from disinvestment, dividends and asset monetisation this fiscal, after LIC's offer for sale alone fetched over Rs 31,000 crore. The government is close to its Rs 80,000 crore target for miscellaneous receipts and may exceed Rs 1 lakh crore, businesstoday.in reports. Disinvestment proceeds stand at Rs 52,716 crore, asset monetisation at Rs 6,367 crore and PSU dividends at Rs 2,553 crore.
The government plans more small stake sales in the coming months. The improved revenue may cushion the impact of the West Asia conflict on the economy, though the fiscal deficit target of 4.3% for FY27 may be recalibrated mid-year, as first-quarter expenditure was higher at Rs 1.35 lakh crore.
The Indian Opinion
The narrative that the government is desperate for PSU cash is overstated. Disinvestment strategy has been consistent and market conditions have been favourable. Yet the reliance on asset sales and dividends to meet fiscal targets reveals a structural weakness in tax buoyancy. The real test will come if markets turn volatile or if PSU dividends fall short. Can the government still meet its deficit goal without leaning on one-off revenues?
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
