New Delhi: Disinvestment Target of FY25 – In a significant move, Budget 2024 has revised its FY 2025 disinvestment target to Rs 50,000 Crore, marking a 67% increase from the previous fiscal year’s target of Rs 30,000 crore. Despite the initial FY24 target being set at Rs 51,000 crore, only 24.5% or Rs 12,500 crore has been achieved as of January 3, 2024, making it practically impossible to meet the March 31, 2024 deadline.

The government, which has sanctioned Rs 44,060 crore as dividends from public Sector enterprises, is banking on higher tax revenues, including dividends from RBI and other public sector lenders, to address the revenue shortfall from disinvestments. There’s a possibility of revising the fiscal deficit target to 5.8%, down from the earlier 5.9%.

Disinvestment Target of FY25

In FY25, the government anticipates a dividend of Rs 1.02 trillion from RBI and state-run banks, along with an expected Rs 48,000 crore dividend from public sector companies.

The government has raised funds through an offer for sale (OFS) in entities like Coal India, NHPC Ltd, Rail Vikas Nigam Ltd, and SJVN Ltd. However, meeting disinvestment targets has been a recurring challenge, with shortfalls noted in various fiscal years except for FY18 and FY19.

Despite disinvestment challenges, healthy dividends, profits, and revenues continue to contribute to the government’s consolidated fund. Public sector entities remain robust in the stock market, showcasing a record high profit ratio.

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