Revisiting disinvestment: Going for a 'bottom-up' approach

The government should give up its dependence on disinvestment as an instrument for containing the fiscal deficit

The Union government’s approach to disinvestment needs to be reviewed. Over the years, it has been used as a tool to reduce the fiscal deficit, though the government has often failed to attain the budgeted target. Even in the current fiscal year, the government so far has not raised even half the targeted amount. It is nonetheless confident of attaining the fiscal deficit target of 6.4 per cent of gross domestic product for the year because of the comfortable tax revenue position. Higher than expected growth in nominal terms because of higher inflation would push up the size of the