The stock market volatility has impacted the central government's disinvestment plans. As a result, the centre is unlikely to meet its divestment target of Rs 50,000 crore for this financial year.
With just about 10 days left in the current fiscal, the centre is facing a shortfall of Rs. 19,000 crore, as per a report by CNBC-TV18. A turbulent stock market has made it more difficult for the government to implement its plans to issue an OFS. And there is a very slim chance that the ₹19,000 crore difference between present actuals and the target will be closed.
The government could also encounter a marginal shortfall in terms of tax income. According to CNBC-TV18, 98% of the total tax revenue goal for FY23 will be achieved, leaving the government with probable 2% shortfall.
The 2% odd gap could translate into a shortfall of ₹50,000–60,000 crore for this financial year based on the combined base of direct and indirect tax goals.