The finance ministry expects a ₹28,000 crore budget impact through these measures.
In the February budget, the central government marked down the disinvestment target to ₹50,000 crore from ₹65,000 crore budgeted initially. It has managed to raise ₹31,107 crore so far.
Officials expect to meet the fiscal deficit target of 6.4% of GDP for FY23 even if the revised disinvestment amount is not realised. “We will be able to stick to fiscal numbers and may even do better,” a senior finance ministry official told ET, adding that the ministry is still hopeful of meeting the divestment target.
The new Treasury Single Account (TSA) and Central Nodal Agency (CNA) system seeks to minimise the cost of government borrowings and to enhance the efficiency in fund flows through a just-in-time release. This reduces floating funds in the system, lowering borrowing and yielding interest savings.
The system is expected to result in savings of about Rs 13,000 crore. Another Rs 8,000 crore saving is expected from centrally sponsored schemes while dividend flow may be about Rs 7,000 crore higher than budgeted, the official said. Dividend receipts from central public sector enterprises have already crossed Rs 50,000 crore compared with the Rs 43,000 crore revised estimate for FY23. The official said the savings in central schemes is because ministries and departments may not be able to fully utilise the allocations and not through a budget cut.
Last week finance secretary TV Somanathan said that he expects the Centre to save interest and other expenses due to the implementation of TSA.The government was hoping to sell its residual stake in Hindustan Zinc Ltd (HZL) but the sale may get delayed due to Vedanta Resources’ proposal to sell its international zinc assets to the former. The government has opposed the proposal.
The Centre holds a 29.54% stake in HZL, which was privatised more than two decades ago. This stake was worth about Rs 40,000 crore at the last closing price of HZL, which is a unit of Vedanta.
