Token privatisation, Microeconomics

Token Privatisation: This implies the sale of 5 per cent or 10 per cent shares of a profit-making public sector enterprise in the market with the objective of obtaining revenue to reduce budget deficit. This is also referred to as ‘deficit privatisation'. Finance Ministers in India have been undertaking such privatisation to reduce their budget deficits. This policy has also been referred to as ‘disinvestment'. It was customary for finance ministers to set targets for disinvestment during a year. It may be noted that total receipts from disinvestment were of the order of Rs. 45,035 crores in 2003-04 and the total investment in Central Government enterprises was of the order of Rs. 3,33,475 crores in 2003. Thus, total disinvestment proceeds work out to be 13.5 per cent of total investment in PSUs. The entire proceeds were used to finance budget deficits. Consequently, this kind of disinvestment was severely criticised because these were the highly profitable PSUs which were disinvested. It was compared to ‘selling the family silver to pay the grocer's bills'.

 

Posted Date: 11/15/2012 2:22:59 AM | Location : United States







Related Discussions:- Token privatisation, Assignment Help, Ask Question on Token privatisation, Get Answer, Expert's Help, Token privatisation Discussions

Write discussion on Token privatisation
Your posts are moderated
Related Questions
Estimating Labour Productivity by Economic Sector for Target Year and its Change between Base and Target Year Contribution of each sector to GDP is known. The contribution of

User Cost of Capital = Economic Depreciation + (Interest Rate)(Value of Capital) - Example An Airline buys Boeing 737 for $150 million with the expected life of 30

Suppose a banking system with the following balance sheet has no excess reserves. Assume that banks will make loans in the full amount of any excess reserves that they acquire and

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Why might economic growth not be compatible with sustainable development? Define economic growth; enhance in national income during a time period. Explain sustainable developme

American Long Run Growth, 1800-1973 Throughout the 19th and the first three quarters of twentieth century the measured pace of economic growth continued to accelerate. The meas

Suppose there are two countries (home and foreign) and that two goods can be produced within those countries: machinery (M) and bread (B). Marginal product of labor (MPL) is given

What are the possibilities of returns to scale in production technology? Three possibilities are there as: technology exhibits (a) constant returns to scale; (b) decreasing ret

if you were making the pricing decision for the gasoline company, would you cut, raise or leae the price unchanged

A monopolist faces the following demand function for its product: Q = 45 - 5P The fixed costs of the monopolist are $12 and the variable costs are $5 per unit. a) What are the