Divestment for fiscal deficit financing disastrous: CPI-M

By IANS,

Kolkata : The Communist Party of India-Marxist (CPI-M) Saturday cautioned against raising funds through divestment of profitable state-run units to finance the fiscal deficit, terming this disastrous.


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“The corporate world is not entirely happy with the proposals in the union budget. Because the government has not gone full steam ahead on the path of economic reforms or disinvestment. It (the corporate world) has become impatient for total reforms,” CPI-M’s Bengali mouthpiece Ganashakti said in an editorial.

“The government is now being shown red eyes through a drop in the Sensex (Sensitive Index of the Bombay Stock Exchange). Though the government has so far not presented the quantum or roadmap for disinvestment, Finance Minister Pranab Mukherjee has spoken of fiscal discipline.

“The common belief is the fiscal deficit will be met through disinvestments of profitable central public sector units. This will be a disastrous path on the part of the central government,” the editorial said.

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