Govt must divest stake in oil PSUs early

The strategic disinvestment of Bharat Petroleum Corporation Ltd (BPCL) was announced in November 2019. As there is not enough time this fiscal year, it would probably be carried out in FY 2020-21.

Some have raised concerns about the government not meeting the targeted disinvestment for FY 2019-20, stating that if the government is not ready to slip on the fiscal deficit of 3.3 per cent of GDP, it could dent government spending and, thereby, not stimulate consumption growth.

When a party forms the government after electioneering, the financial year is shortened to almost six months as the next Budget is to be presented by February 1. Thus, the government failing to achieve its disinvestment target in FY 2019-20 cannot be faulted. However, FY 2020-21 is a different ball game.