Union Budget targets Rs 80,000 crore through divestment and asset sales

MUMBAI: The Centre has set an ambitious disinvestment target of Rs 80,000 crore under miscellaneous capital receipts for 2026-27 which includes sale of shares in PSUs as well as asset monetisations. The budgeted target is a sharp jump from the revised estimate of about Rs 34,000 crore for the current fiscal, signalling renewed optimism after years of muted realisations.

The push also aligns with the Economic Survey, which has argued for redefining public sector enterprises in a manner that gives the government greater flexibility to dilute stakes in listed companies, while retaining strategic control where necessary.




In 2025-26, the government had budgeted Rs 47,000 crore from miscellaneous capital receipts, but collections lagged through the year, prompting a cut in the revised estimate to Rs 34,169 crore. Actual receipts in 2024-25 were even lower at Rs 20,214 crore, underscoring persistent execution challenges.

Officials said the higher target for FY27 reflects expectations of improved market conditions and a stronger pipeline of stake sales and asset monetisation. 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 divestments. Several planned deals, including the strategic sale of IDBI Bank, were deferred.

Since FY24, the government has moved away from announcing a standalone disinvestment number, instead clubbing proceeds from stake sales and asset monetisation under miscellaneous capital receipts. This includes monetisation of assets such as roads, railways and power infrastructure through investment trusts and other structures.

Market participants said the Rs 80,000-crore target points to a renewed push to shore up non-tax revenues as part of fiscal consolidation, but cautioned that past shortfalls suggest the outcome will depend on timely execution and supportive market conditions rather than headline intent alone.