Question

Disinvestment of public sector enterprises is it the right step

Answer 1

Answer:

Disinvestment of public enterprises

Meaning of Disinvestment:

The Government can sell its enterprises completely to the private sector or disinvest a part of its equity capital held by it to the private sector companies or in the open market. ... Strictly speaking, disinvestment means the dilution of stake of the Government in a public enterprise.

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Answer 2

Answer:

First, resources available with the Government are scarce. The Government needs resources to reduce its budget deficit. Second, the Government urgently requires resources to make investment in infrastructure, social sectors such as education, public health and for poverty alleviation programmes.