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The government’s disinvestment receipts tally this year could end up being around ₹15,000 crore, a far cry from the ₹51,000 target set in the 2023-24 Budget, CareEdge Ratings said on Friday.
Moreover, most corporate leaders expect the divestment target for 2024-25 to be scaled down to ₹40,000 crore, as per a survey of 120 industry captains on expectations from the upcoming Interim Budget conducted by the firm.
The rating agency also revised its fiscal deficit projection for this year to 6% of GDP, terming it a “slight slippage” from the 5.9% target set in the Budget, and expected the upcoming Interim Budget for 2024-25 to set a 5.3% target. However, almost half of industry respondents believed it could range between 5.4% and 5.9% of GDP in 2024-25.
The Centre has so far netted ₹10,051.7 crore from shares sales in public sector enterprises, as per data from the Department for Investment and Public Asset Management (DIPAM) in the Finance Ministry, which is less than 20% of the year’s target.
“With the upcoming election and the imminent implementation of the Model Code of Conduct (MCC) just months away, there appears to be limited scope for advancement in big-ticket divestment initiatives,” the firm said in a report, noting that the big-ticket sale of IDBI Bank planned for this year now appears uncertain, while earlier attempts to sell the Centre’s stake in Pawan Hans and BPCL had come undone. The proposed stake sale in the Shipping Corporation of India is currently hindered by the demerger of land assets, CareEdge added.
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