"There will a lot more divestment going forward": FM signals aggressive push for CPSE sales to drive revenue

Centre has pegged fiscal deficit target for the next financial year at 4.3%

• More CPSE divestment planned to boost revenue and meet debt-to-GDP targets
• IDBI disinvestment likely to conclude soon
• Fiscal deficit target set at 4.3 percent of GDP for next financial year

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The pace and direction of disinvestment should set the tone for revenue generation in the coming years, Finance Minister Nirmala Sitharaman said on Monday.

"Going forward, there will be a lot more divestment. Specifically, divestment of Central Public Sector Enterprises (CPSEs) will be seriously considered now onwards," Sitharaman told reporters at a post-Budget press-briefing.

The FM was responding to a query on the steps being taken to generate a steady flow of revenue – to ensure debt-to-GDP target of 50 percent by FY31 is achieved.

"I also will have to work on broadening the tax base, so that direct tax revenues grow. However, divestment is a priority," the FM noted. She added that IDBI disinvestment is likely to be concluded soon.

For FY27 – the Centre has pegged revenue estimate from miscellaneous capital receipts at Rs 80,000 crore – sharply higher from the revised estimate of Rs 33,837 crore for FY26. The RE for FY26 is significantly lower than the Budget Estimate (BE) – which was Rs 47,000 crore.

Miscellaneous capital receipts include revenue generation through both sale and monetization of government assets.

The Central government has pegged fiscal deficit target for the next financial year at 4.3 percent, as a ratio of GDP. This year, the target is 4.4 percent.

And the Debt-to-GDP aim for FY27 is pegged at 55.6 percent – down from 56.1 percent for FY26.

On the recommendation of the economic survey, which talks about changing the definition of "government company" under the Companies Act to enable greater equity monetisation from central public sector enterprises (CPSEs), while retaining effective control through special resolution rights – the FM said that there is "no thought being given on it".

The Survey noted that effective control does not require majority ownership. “Since effective control requires only about a 26 per cent stake, the Government could consider amending the definition of ‘Government Company’ under the Companies Act, limited to listed entities, to allow them to remain as government companies with a minimum of 26 per cent ownership,” it said.