Government Sets Ambitious Rs 80,000 Crore Target for Divestment and Asset Monetisation in 2026-27
The Indian government has outlined an ambitious plan to raise Rs 80,000 crore through divestment and asset monetisation in the fiscal year 2026-27. This represents a sharp and substantial increase from the revised estimate of nearly Rs 34,000 crore for the current period, signaling a renewed focus on leveraging state assets to boost revenue.
Shift in Strategy: From Specific Targets to Miscellaneous Capital Receipts
While the government has moved away from mentioning specific targets for asset sales in state-run firms, the realisations from divestment are now categorised under what is termed as miscellaneous capital receipts. This strategic shift allows for greater flexibility in the execution of asset monetisation plans, aligning with broader economic objectives.
Economic Affairs Secretary Highlights Asset Monetisation Focus
Economic Affairs Secretary Anuradha Thakur emphasised that the bulk of the Rs 80,000 crore target would be achieved through asset monetisation, as previously announced in the Budget. She also indicated that the government will shortly unveil a fresh asset monetisation pipeline, detailing new avenues and assets to be monetised in the coming years.
Past Performance and Future Outlook
In recent years, receipts from disinvestments have often fallen short of the numbers mentioned in budget documents, highlighting challenges in execution. However, the government remains committed to enhancing private sector participation and efficiency through a composite strategy that includes both divestment and closure of non-viable units.
DIPAM Secretary Arunish Chawla explained to reporters, "Disinvestment and closure have to be seen together as part of that composite strategy, which enhances or increases the participation and efficiency of the private sector." This approach aims to streamline public sector enterprises and foster a more dynamic economic environment.
Broader Budget Context and Public Reaction
The divestment target is part of the broader Union Budget 2026-27, which has sparked mixed reactions. For instance, West Bengal Chief Minister Mamata Banerjee criticised the Centre's budget as having "nothing for the common man" and labelled it a "Humpty Dumpty" budget, reflecting political dissent over fiscal policies.
Meanwhile, the budget also outlines changes in income tax slabs and rates for FY 2026-27, impacting taxpayers under both new and old regimes. Additionally, it details what gets cheaper and what gets costlier, affecting everyday expenses for citizens across India.
As the government pushes forward with its divestment and asset monetisation plans, stakeholders will closely monitor implementation to see if the ambitious Rs 80,000 crore target can be met, potentially reshaping India's economic landscape in the years ahead.
