Government Announces Ambitious Rs 80,000 Crore Disinvestment Target for 2026-27
The Centre has set an ambitious disinvestment target of Rs 80,000 crore under miscellaneous capital receipts for the fiscal year 2026-27, marking a significant push to boost non-tax revenues. This target includes proceeds from the sale of shares in public sector undertakings (PSUs) as well as various asset monetisation initiatives.
Sharp Increase from Current Fiscal Targets
The budgeted target represents a sharp jump from the revised estimate of approximately Rs 34,000 crore for the current fiscal year (2025-26), signaling renewed optimism in government circles after years of muted realisations. This substantial increase comes despite persistent execution challenges witnessed in recent years.
In 2025-26, the government had initially budgeted Rs 47,000 crore from miscellaneous capital receipts, but collections lagged throughout the year, prompting a downward revision to Rs 34,169 crore in the revised estimates. Actual receipts in the previous fiscal year (2024-25) were even lower at Rs 20,214 crore, highlighting the ongoing difficulties in meeting disinvestment targets.
Alignment with Economic Survey Recommendations
The renewed disinvestment push aligns with recommendations from the Economic Survey, which has advocated for redefining public sector enterprises in a manner that provides the government with greater flexibility to dilute stakes in listed companies while retaining strategic control where necessary. This approach aims to balance fiscal needs with national security and economic priorities.
Since fiscal year 2024, the government has moved away from announcing a standalone disinvestment number, instead clubbing proceeds from stake sales and asset monetisation under the broader category of miscellaneous capital receipts. This category includes:
- Monetisation of infrastructure assets such as roads, railways, and power infrastructure
- Proceeds from investment trusts and other financial structures
- Strategic sales and minority stake divestments in public sector enterprises
Execution Challenges and Market Realities
Officials have indicated that the higher target for FY27 reflects expectations of improved market conditions and a stronger pipeline of stake sales and asset monetisation opportunities. However, recent history suggests execution remains a critical challenge.
In FY26, disinvestment activity was largely limited to minority stake sales through offers for sale, including a roughly Rs 5,000-crore divestment in Mazagon Dock Shipbuilders and other smaller divestments. Several planned strategic sales, most notably the much-anticipated sale of IDBI Bank, were deferred during the year.
Market Perspective and Fiscal Implications
Market participants have noted that the Rs 80,000-crore target points to a renewed government push to shore up non-tax revenues as part of broader fiscal consolidation efforts. However, analysts have cautioned that past shortfalls suggest the actual outcome will depend heavily on timely execution and supportive market conditions rather than headline intent alone.
The ambitious target comes alongside other significant budget announcements, including a capital expenditure target of Rs 12.2 lakh crore for FY27 and ongoing discussions about potential relief for salaried and middle-class taxpayers in the new tax regime. As Finance Minister Nirmala Sitharaman outlined the government's fiscal roadmap, the disinvestment target emerged as a key component of revenue generation strategies for the coming years.
