Union Budget 2016: Govt To Drastically Lower FY17 Disinvestment Target

The government is likely to drastically scale down the disinvestment target for Union Budget 2016-17 from the one set for the current fiscal as markets are expected to stay subdued, industry chamber Assocham said today.

The government had budgeted to collect Rs 69,500 crore through PSU disinvestment in current fiscal. But volatile market conditions have forced it to delay stake sale plans.

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With only two months left for the fiscal to end, government has so far been able to mop up just Rs 12,700 crore through stake sale in four PSU.

The markets are expected to stay in subdued mood even in the next fiscal and the government is likely to drastically scale down targets for realisation of resources from PSU stake sale in the Budget for 2016-17, Assocham said.

"Hopefully, the Finance Ministry will desist from setting an un-realistic disinvestment yet again for Union Budget 2016-17," it said its Budget expectations.