FILLING THE COFFERS

Concerns around coalition politics notwithstanding, the Centre is likely to maintain its current stance on disinvestment and asset monetisation. Investors and markets await the Union Budget to reveal the government's actual intent

- SURABHI

DISINVESTMENT RECEIPTS. In a break from the past, this term went missing in the Interim Budget 2024-25. It was replaced by a category called “miscellaneous capital receipts” with a target of ₹50,000 crore for FY25. A closer reading of the fine print of the Budget documents reveals that this includes “receipts on account of management of equity investments and public assets through various mechanisms”.

This fresh categorisation is seen to reflect the government’s strategy of a measured approach to stake sales and dividends from central public sector enterprises (CPSEs). This approach ensures that CPSEs are not just seen as a means to raise revenue, but the government also takes measures to enhance and improve their productivity and management. The stance is likely to continue in the Union Budget.

Despite concerns about the impact of coalition politics and regional allies on strategic stake sales, it is business as usual for the government. According to senior government sources, the current policy on disinvestment and strategic sales of CPSEs will continue, at least for now. The Union Budget 2024-25, too, is likely to maintain the ₹50,000-crore disinvestment target. Asset monetisation, which has seen reasonable success in recent years, too, will continue.

Together, these will ensure that the central government continues to have sufficient fiscal space to undertake expenditures while maintaining fiscal discipline.