Interim Budget 2024: A shortfall in disinvestment revenue is expected in FY24.
- SUMMARY
- The FY25 target may be raised to Rs. 50,000 crore.
- Pending disinvestment deals are to be completed in the coming fiscal year
- Further LIC stake sales are unlikely for the time being.
In the interim budget, the government is anticipated to maintain its focus on the disinvestment of public sector units in order to move forward with outstanding transactions. According to sources, the target from disinvestment proceeds will likely be retained at more than Rs 50,000 crore for the time being to demonstrate the government’s determination to proceed with disinvestment operations.
The Centre had set a target of Rs 51,000 crore from disinvestment revenues for 2023–24, but it is likely to fall short. So far, it has received Rs 10,051.73 crore in pure share sale proceeds and Rs 43,843.38 crore in dividends from central public sector companies, bringing the total receipts from the Department of Investment and Public Asset Management to Rs 53,895.11 crore.
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However, the interim budget, which will be announced on February 1, is likely to signal the government’s determination to move forward with many of these outstanding transactions, as will the aim. The entire budget, which will be delivered later this year, will make a final judgment on the disinvestment revenues.
They also argue that a portion of the revenue gap will be covered by greater dividend proceeds in non-tax revenue, while robust tax collections would also help the Center fulfill the budget deficit objective in absolute terms.
DIPAM has been looking for an advisor to oversee the Rs 50,000 crore assets under management of the Bharat Bond Exchange Traded Fund in recent weeks. It has also decided to cancel the expression of interest for the strategic disinvestment of Salem Steel Plant, Salem, a unit of SAIL, due to a lack of enthusiasm from the selected bidders in moving forward with the transactions
Frequently asked question
What is the difference between a boat on account and an interim budget?
When the incumbent government is unable to present a complete union budget, generally during an election, an interim budget is enacted. The vote on accounts, on the other hand, is held annually. An interim budget is good for one year. A vote on account normally lasts two months.
What is an interim budget?
What exactly is an interim budget? If the government does not have time to publish a full budget or if general elections are approaching, it will offer an interim budget in Parliament. If elections are approaching, it is only fair that the incoming government draft the entire budget.
What is the purpose of the interim budget?
What is the interim budget’s purpose?
- Allocations of Expenditure: An interim budget normally allocates cash for vital government operations, continuing programs, and any emergency needs. It does not implement new policies or initiatives that could have big financial consequences.
What is the interim budget?
Nirmala Sitharaman, the finance minister, is scheduled to submit the interim budget on February 1, 2024, prolonging its validity until the 2019 general elections.
What are a full budget and an interim budget?
The Union Budget covers the full fiscal year. The interim budget merely contains a summary of the preceding year’s expenses and income. The Union Budget will include The prior year’s income and expenses would be detailed. The component of income derived from tax collection will not be included in the interim budget.
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