The deliberate sale or liquidation of government-owned assets, typically in the form of stock in state-owned businesses and other assets, is referred to as disinvestment. It is an essential component of Union Budget policy.
Disinvestment’s primary goal is to lessen government ownership and influence over particular companies or industries. The government is scheduled to assess the disinvestment target for FY24 in light of the targets not met in the previous fiscal year, ahead of the Union Budget 2024.
A disinvestment objective of Rs 51,000 crore was established in the Union Budget for FY 2023–2024. But thus far, the government has only received Rs 10,051 crore.
Disinvestment is a financial tactic that entails asset sales or liquidations. It is frequently connected to governments raising money by selling assets such as shares in publicly traded enterprises and other state-owned businesses.
The disinvestment goals are important, and the Union Budget 2024 presents an opportunity for the government to adjust its plans in light of the existing gap. The administration is likely to achieve a compromise between budgetary objectives and the necessity for strategic disinvestment, thus the 2019 budget will be closely observed.
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