Centre may keep deficit in check after big-bang IPOs

Government on Monday said that it would be able to contain its fiscal deficit to 4.8 per cent of GDP thanks to the major success of the six IPOs as part of the disinvestment process. Speaking at an insurance summit, advisor to the finance minister Vijay Kelkar said that “about $3 billion (nearly Rs 13,500 crore) would be mobilised through public offers of PSU shares in our bourses.” He said the success of public offers would assist the centre to restrict the fiscal gap to the targeted level of 4.8 per cent.

“We have bid for more or less 15 per cent of the public offers. In ONGC alone, we have bid for shares worth about Rs 1,000 crore. The figure would be around Rs 2,000 crore in all the companies taken together,” LIC chairman S B Mathur said. GIC chairman P C Ghosh also confirmed the corporation has heavily bid for PSU shares.