The government today indicated that it will set disinvestment target for the next fiscal at Rs 30,000 crore,but may not be able to achieve the Budget Estimates of 2011-12.
“The indicative targets for PSU disinvestment for 2012-13 and 2013-14 are Rs 30,000 crore and 25,000 crore respectively,which are based on the projected figures in the Medium Term Fiscal Policy Statement of the Union Budget for 2011-12,” Finance Minister Pranab Mukherjee said in the Rajya Sabha.
The target for PSU disinvestment,as set out in the Budget,for 2011-12 was Rs 40,000 crore,he said.
“Uncertain global economic climate,mainly due to fallout of euro zone crisis,has adversely affected financial markets,which has been responsible for slowing down PSU disinvestment,” Mukherjee said.
He said the unfolding of the euro-zone sovereign debt crisis is being closely watched so as to undertake timely policy intervention.
“More,specifically,the sub-committee of the Financial Stability and Development Council (FSDC),chaired by the Governor,RBI is monitoring the situation,” he added.
The Finance Minister said the general government debt is largely domestic and stood at 66.4 per cent of GDP at the end of March 2011.
This is much below the level of 99.7 per cent of GDP for advanced economies and 85.3 per cent for the euro area for 2010,as per the IMF’s Fiscal Monitor Update,January 2012,he said.
In another reply,Minister of State for Finance Namo Narain Meena said,the total cash and bank balances with the central public sector enterprises as on March 31,2011 was 2.84 lakh crore.