NEW DELHI: The union government is disinvesting up to 20% of its equity in selected public sector undertaking in favor of mutual funds and public sector financial and investment institutions finance minister Yashwant Sinha announced in Parliament Monday presenting the interim budget for 1991 -92.
This would yield Rs 2500 crore to the exchequer Sinha said.
The finance minister also announced reduction of major subsidies on exports fertilizers and food in order to save nearly Rs 1000 crore in governmental expenditure.
Seeking a vote-on-account for about four months Sinha imposed no fresh taxes. He had earlier this year mobilized additional revenues through a package of measures in the wake of the Gulf war.
The Rs 100000 crore budget raises the defence outlay by Rs 1100 crore or about 4% to Rs 16850 crore (rpt 16850 crore) as against Rs 15750 crore provided in the revised outlay for last year.
Sinha takes into account external assistance of Rs 4000 crore excluding grants but net of repayments. India received Rs 3984 crore in external assistance in the outgoing year.
Article extracted from this publication >> March 8, 1991
