Budget 2026 sets ₹80,000cr disinvestment target for FY27
What's the story
The Indian government has set a disinvestment target of ₹80,000 crore for the financial year 2026-27. The goal was announced in the Budget 2026 documents released after Finance Minister Nirmala Sitharaman's budget speech on Sunday. In the current fiscal year (FY2025-26), India has raised only ₹8,800 crore against a revised budgeted target of ₹33,837 crore for the entire year.
Historical context
Disinvestment targets missed in previous years
The Indian government has missed its disinvestment targets in previous years as well. The trend has raised questions about the government's ability to meet its fiscal targets through asset sales. Former DEA Secretary Subhash Chandra Garg had earlier told CNBC-TV18 that "Government Company" is a notional classification and does not affect the running of the company or disinvestment plans.
Funding strategy
Disinvestment as a key revenue source for the government
Disinvestment is a key strategy for the Indian government to raise funds without increasing taxes. The money raised from selling stakes in public companies is critical for financing major projects like infrastructure development and green initiatives. However, revenue from these sales has seen a sharp decline, from nearly ₹85,000 crore in FY19 to just ₹8,800 crore so far this fiscal year (as of February 2026).