Govt raises Rs 20K cr through disinvestment
The Centre has already mobilised close to Rs 20,000 crore through stake sales and asset monetisation in the first two months of the current financial
The Centre has already mobilised close to Rs 20,000 crore through stake sales and asset monetisation in the first two months of the current financial year, as it looks to shore up revenues amid growing concerns over the fiscal impact of the conflict in West Asia, according to a TOI report.The amount raised so far accounts for roughly a quarter of the government's full-year target, reflecting a renewed push to generate non-tax revenues at a time when spending pressures are mounting.The urgency stems largely from rising energy and fertiliser costs.The fertiliser ministry has sought a sharp increase in subsidy support, with estimates indicating that the allocation of Rs 1.7 lakh crore for the current fiscal may need to be doubled.
Officials are also grappling with supply uncertainties as global fertiliser prices rise, shipping availability tightens and some overseas suppliers pull back from the market.The report noted that government has already extended support worth more than Rs 1.2 lakh crore to the oil sector, including excise duty reductions, to soften the impact of elevated crude oil prices on consumers.No immediate plans to alter spendingDespite the additional burden, government officials said there is currently no move to trim expenditure or seek parliamentary approval for extra spending during the upcoming monsoon session.According to a senior official cited by TOI, the government had built a degree of global uncertainty into its Budget assumptions and does not see an immediate need to revisit expenditure plans.
A clearer assessment of the fiscal situation is expected once first-quarter revenue and spending data become available in mid-July.At the same time, the finance ministry is accelerating efforts to unlock funds through disinvestment and asset monetisation.Finance Minister Nirmala Sitharaman is understood to be closely monitoring the situation, while the Department of Investment and Public Asset Management (DIPAM) and the Department of Public Enterprises continue to work on a broader pipeline of transactions.Of the funds raised so far this fiscal, around Rs 12,166 crore has come from disinvestment, while asset monetisation has contributed another Rs 6,367 crore. Recent stake sales in Central Bank of India, Coal India and NHPC have helped boost collections.The government's latest offer to sell up to a 3% stake in NLC India received strong investor interest, with the issue subscribed more than five times on the opening day.
The BriefWire