Govt meets divestment target of Rs 30,000 cr via selloff, asset sale

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The Indian government met its adjusted goal for generating revenue through disinvestment and asset sales. By amalgamating both these avenues, the government managed to exceed the mark of Rs. 30,000 crore in revenue collection in the previous fiscal year, the government’s miscellaneous capital receipts for the FY24 surpassed the revised estimate of Rs 30,000 crore, a report in The Economic Times said.

In FY24, the government garnered Rs 16,507 crore through disinvestment whereas asset monetisation brought in approximately Rs 16,000 crore. According to the report, some of the assets, specifically road assets, were monetised using a Toll, Operate, and Transfer (ToT) model. This means that private entities were given the rights to collect tolls, operate the road assets for a certain period, and then transfer them back to the government after the agreed-upon term.

The interim budget for the fiscal year 2025 consolidated the government’s targets for disinvestment and asset monetisation under the category of “miscellaneous capital receipts” instead of delineating them separately.

Presented on February 1, the budget outlined a combined realisation target of Rs. 30,000 crore for the fiscal year 2024 (revised estimate) and Rs. 50,000 crore for the fiscal year 2025.

Initially, the government had set a disinvestment target of Rs. 51,000 crore for the preceding fiscal year ending on March 31. However, it had to scale back its disinvestment objectives due to unforeseen circumstances, notably the prolongation of the IDBI Bank sell-off process, which extended into the fiscal year 2025.

In the fiscal year 2023-24, the government witnessed a significant increase in dividend collections from non-financial Central Public Sector Enterprises (CPSEs) and entities in which it holds a minority stake. According to data from the Department of Investment and Public Asset Management (DIPAM), The collections reached a new peak of Rs. 63,749 crore. This figure represents a substantial rise of about 27.5% from the revised estimate of Rs. 50,000 crore. It also surpasses the previous record of Rs. 59,533 crore recorded in the fiscal year 2022-23, indicating a robust performance by state-run firms across various sectors.

The details of the government’s fiscal deficit data for the fiscal year 2023-24 will be released next month, providing a comprehensive understanding of the government’s financial position and its ability to manage its expenditures and revenue streams effectively. This data will offer insights into how well the government has fared in meeting its fiscal targets and managing its finances amidst economic challenges and uncertainties.