Even though the department of investment and public asset management (Dipam) had set a target to complete the transactions by June-end, the government may have to give shortlisted bidders a little bit of extra time if needed
The revised MoU guidelines are aimed at building skin in the game for the management of the CPSEs while aiding the Centre to fetch more non-debt receipts from disinvestment, a source said.
Union Budget 2021 India: Sharp increases in outlays are seen for FY22, in many areas including grants in aid to states, 'water supply and sanitation”, 'medical and public heath', and transfers to the north-eastern states (s
Nomura had termed the government plans to spend 1.6% of GDP in Q4 “an ambitious target”, as it requires an 18% y-o-y growth in Q4, compared with 8% in April-December.
He said the disinvestment receipts target of Rs 1.75 lakh crore for the next fiscal would surely be met, if not exceeded. The process has already commenced for big-ticket sales, so achieving the target won't be difficult at a
Union Budget 2021 India: In the Commission’s assessment, gross tax revenues for the FY22-FY26 period are expected to be Rs135.2 lakh crore, of which divisible pool (after deducting cess and surcharges & cost of collection)
“While a smaller part of this enhanced investments next year will be supported by budget, a large part will likely be funded via enhanced borrowings and asset monetisation proceeds of the CPSEs, such as railways, NHAI, GAIL
The department of fertilisers and the ministry of agriculture are working out the details of the DBT scheme, which may be announced in the Budget for FY22, sources told FE.
The Centre hiked special additional excise/cess levied on petrol and diesel sharply in October 2019, March 2020 and then in May. These taxes are not part of divisible pool, only the basic excise is.
State governments have slowed down investments significantly in the current fiscal year and the Centre's Budget capex also looks constrained, due to the pandemic-induced revenue shortfalls.
While infrastructure investment was predominantly made by the public sector (the Centre and state governments had a share of over 70%) between FY08 and FY17, the share of private sector was ~30%.
Overall spending, including revenue expenditure, by the Centre and states will, however, rise only 15% or thereabouts on year to over Rs 33 lakh crore in H2.
Borrowings by the twelve states whose finances were reviewed by FE rose 50% on-year to Rs 2.28 lakh crore in April-October of this fiscal compared with 2.6% increase in the year ago period.
Despite a sharp revenue slump, the Centre transferred budgeted amounts to state governments as their tax share from divisible pool in April-May, but has since found this practice unsustainable – October transfers were a fif
Income tax, customs, excise, pharma, labour acts are also being reviewed. Certain ministries feel that some aspects of criminalisation is necessary for efficient enforcement.
The idea is to soften the blow to the economy from the sharp drop in private investments and slashing of capital expenditures by revenue-starved states.
If public-sector fixed capital formation has held up in recent years even amid a worrisome, prolonged decline in private investments, the contribution of state governments have been vital; state capex is also seen to have a h
CPSE heavyweight ONGC’s stock (the CPSE in terms of highest M-cap), has lost 57% value between March 29, 2019, and August 24, 2020. Similarly, NTPC has lost 37% and PowerGrid 18% during the period.