Privatisation push to bridge tax gap
The government may consider increasing the divestment target for 2019-20 from the budgeted Rs 1.05 lakh crore by opting for the strategic sales of state-owned units and selling stakes in more PSUs.
The finance ministry expects a revenue shortfall of about Rs 2.5 lakh crore because of lower tax collection, including GST, and a Rs 1.45-lakh-crore giveaway following the reduction in corporate tax rate.
Officials said the strategic sale of state-owned units is key not only to meet the divestment target but also to garner additional revenue, which can offset lower collections under other heads.
