India's Fiscal Deficit Target: Govt on Track for 5.9% in FY24

New Dehi, Dec 18 (PTI) The government on Monday said it is likely to achieve the fiscal deficit target of 5.9 per cent of the GDP in the current financial year.

So far in the current fiscal, the government has realised about Rs 10,050 crore through disinvestment in various Central Public Sector Enterprises(CPSEs), Minister of State for Finance Bhagwat Karad said in the Lok Sabha.

To a question on how the delay in privatisation is likely to impact the government's fiscal deficit target in the current year, Karad said fiscal deficit depends upon many factors such as total expenditure, total non-debt receipts and GDP (Gross Domestic Product) etc. for the financial year.

"Tax and non-tax receipts constitute major proportion of the government's total non-debt receipts. The government is likely to achieve the fiscal deficit target of 5.9 per cent of the GDP in the current financial year 2023-24," Karad said in a written reply.

The budget had pegged disinvestment receipts in the current fiscal at Rs 51,000 crore.

Karad said the budget estimate for disinvestment receipts in the current FY 2023-24 was fixed based on the probability of completion of the transactions.

However, disinvestment is an ongoing process, and execution of disinvestment transactions depends upon administrative feasibility, market conditions, domestic and global economic outlook, and investor interest, he added.

"In view of this, it is difficult to anticipate the quantum of actual proceeds from disinvestment during the current FY 2023-24," Karad said.

The government, since 2016, has given 'in-principle' approval for strategic disinvestment of 36 cases of PSEs and/or subsidiaries of PSEs/Banks.

Out of the 36 cases, 33 cases are being handled by DIPAM (Department of Investment and Public Asset Management) and 3 cases are being handled by the respective Administrative Ministry/Department.

Out of the 33 cases being handled by DIPAM, strategic disinvestment transactions have been completed in 10 cases, 8 transactions are in CPSE to CPSE space while Air India and NINL have been privatised.

Of the remaining 23 cases, 5 PSEs are under consideration for closure; 1 case held up due to litigation and 1 case is under Corporate Insolvency Resolution Process (CIRP) in NCLT and 2 transactions have been found not feasible.

Remaining 14 transactions are at various stages, the minister said.