Family silver to finance deficit for 2 more years
An official told FE that the finance ministry would soon seek a Cabinet nod. “This could be a big stimulus for the economy which is again looking at state support to spur investment,” the official said.
In November 2009, the government decided that disinvestment proceeds during April 2009 to March 2012 would be available in full for meeting the capital requirements of chosen social sector programmes. Until then, money raised from the sale of minority government shareholdings in profitable central public sector enterprises was channelled to the national investment fund which was maintained outside the consolidated fund of India. The interest income from the fund was used to finance social sector schemes and meet capital requirements of profitable PSUs and those which could be revived. However, in 2009, the government decided to use the proceeds for social sector programmes for three years, in order to guard against the impact of a global slowdown and domestic drought.
For the current fiscal, the government has targeted a fiscal deficit of 4.6% of the GDP. However, on account of higher subsidy
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