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The new government that is expected to be formed with the help of coalition partners may well have to walk a fine line when it comes to divesting government holdings in public sector enterprises.
The most talked about option is to deploy a part of the RBI's dividend to reduce the fiscal deficit to convey fiscal consolidation.
Higher non-tax revenues, including dividends from the Reserve Bank of India (RBI) and state-run banks, are expected to offset the revenue shortfall from disinvestments, prompting the government to revise downwards the FY24 fiscal deficit target to 5.8% of GDP.
The Union budget for FY24 had estimated raising ₹51,000 crore from the sale of the government’s shares in public sector companies.It is unlikely that any new big-ticket additions will be made to the divestment list for FY25
Until Sep, government could sell only 3% in Coal India and 5.36% in Rail Vikas Nigam Ltd