disinvestment proceeds that are estimated at over Rs 36,000 crore in FY15 to keep the fiscal deficit in check at 4.1 per cent of the GDP.
“Stake sales in public sector firms have been a big source of revenue for the government in the last few years. If there is a re-think on disinvestment by the new government, alternate revenue raising measures will have to be looked into for funding the fiscal deficit,” said a senior government official.
The NDA government, between 1998 and 2004, went ahead with strategic sales of a number of loss-making PSUs including Bharat Aluminium, Hindustan Zinc, some ITDC hotels. According to the CLSA report, while the NDA government raised Rs 33,000 crore ($5.5 billion) through stake sales, the UPA has raised Rs 1.26 lakh crore ($21 billion) in its tenure at the Centre.