Disinvestment Target Set at ₹80,000 Crore

The Centre has set an ambitious target of ₹80,000 crore from disinvestment and asset monetisation in FY27, signalling a renewed push to shore up non-tax revenues under the Union Budget 2026. The sharp increase reflects optimism on market conditions and a stronger pipeline of stake sales, even as fiscal consolidation remains a stated priority of the government led by Nirmala Sitharaman.

Sharp Jump in Miscellaneous Capital Receipts

The ₹80,000 crore target has been budgeted under miscellaneous capital receipts for 2026–27. This is a significant jump from the revised estimate of about ₹34,000 crore for the current fiscal year. In FY26, the government had originally budgeted ₹47,000 crore, but muted execution led to a downward revision. Actual receipts in FY25 were even lower at ₹20,214 crore, highlighting persistent challenges in meeting disinvestment goals.

PSU Stake Sales and Asset Monetisation

The disinvestment target includes proceeds from the sale of government equity in public sector undertakings as well as asset monetisation. Since FY24, the Centre has moved away from announcing a standalone disinvestment figure, instead clubbing stake sales with monetisation of assets such as roads, railways, and power infrastructure through investment trusts and similar structures. In FY26, activity was largely limited to minority stake sales, including a roughly ₹5,000-crore divestment in Mazagon Dock Shipbuilders, while several strategic sales were deferred.

Economic Survey and Policy Direction

The renewed push aligns with the Economic Survey, which argued for redefining public sector enterprises to give the government greater flexibility in diluting stakes in listed companies while retaining strategic control where required. Officials said the higher FY27 target reflects expectations of improved market conditions and a stronger deal pipeline, supported by a more favourable macroeconomic environment.

Important Facts for Exams

• Disinvestment proceeds are booked under miscellaneous capital receipts.
• Asset monetisation includes roads, railways, and power infrastructure.
• Minority stake sales differ from strategic disinvestment.
• Economic Survey influences medium-term fiscal policy direction.

Market Outlook and Execution Risks

Market participants view the ₹80,000-crore target as a signal of intent to strengthen non-tax revenues and support fiscal consolidation. However, they caution that past shortfalls underline the importance of timely execution, regulatory clarity, and supportive market conditions. The eventual outcome will depend less on headline targets and more on the government’s ability to close transactions efficiently amid evolving capital market dynamics.