In the budget of the financial year 2022-23, people will have special eyes on a figure. That is the Disinvestment Target. Finance Minister Nirmala Sitharaman will present the budget for the next financial year on February 1. Let us know how has been the track record of the government so far regarding disinvestment. We will also know what the disinvestment target could be for the next financial year.
The track record of the government in achieving the disinvestment target has not been good. Despite this, almost every year the government has increased this target. Experts believe that there will not be much change in the disinvestment target for the next financial year as well. Despite this, the government is likely to miss the government’s disinvestment target during the current financial year. The disinvestment target in the financial year 2022-23 could be between Rs 1.5 to Rs 2 lakh crore. However, this will depend on LIC’s disinvestment during this financial year.
The government started the process of disinvestment of Life Insurance Corporation of India (LIC) two years ago. So far this process has not been completed. The government has set a disinvestment target of Rs 1.75 lakh crore for the current financial year (2021-22). Out of this, Rs 1 lakh crore is expected to come from LIC’s disinvestment only. Government officials have said that the disinvestment of LIC will be completed by March this year. But, there seems little hope for this right now. This is the reason why analysts are beginning to believe that the government will not be able to fill its coffers with the disinvestment of LIC in the current financial year.
Morgan Stanley has written in its budget note, “The government wants to complete the process of disinvestment in LIC by March this year. But, given the time left, this process is likely to go ahead. When this happens, we will have to take the next step.” The disinvestment target is expected to be higher by Rs 1.25 lakh crore in the financial year.”
During this financial year, the government was to disinvest BPCL, BEML, Shipping Corporation and two state-owned banks. But it seems that now their disinvestment will be possible in the next financial year. In the current situation, the government may show slowness in the process of disinvestment. The reason for this is that assembly elections are going to be held in five states now. The second reason is that the conditions in the stock markets are also not favorable.
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