Budget 2026: Centre Targets ₹80,000 Crore from Disinvestment and Asset Monetisation in FY27

Higher Disinvestment Target in Union Budget 2026

The Union government has set an ambitious ₹80,000 crore target from disinvestment and asset monetisation in FY27 , indicating a renewed effort to strengthen non-tax revenues under the Union Budget 2026. The move reflects confidence in market conditions and an expanded pipeline of stake sales, even as fiscal consolidation remains a core objective of the government led by Nirmala Sitharaman .

Significant Rise in Miscellaneous Capital Receipts

The FY27 target has been placed under miscellaneous capital receipts , marking a sharp increase from the revised estimate of around ₹34,000 crore in FY26 . For context, the Centre had initially budgeted ₹47,000 crore for FY26 but scaled it down due to slower-than-expected execution. Actual disinvestment receipts in FY25 were lower still, at about ₹20,214 crore, underlining the historical difficulty in achieving annual targets.

Mix of PSU Stake Sales and Asset Monetisation

The ₹80,000 crore figure combines public sector undertaking (PSU) stake sales with proceeds from asset monetisation . In recent years, the government has moved away from declaring a separate disinvestment number, instead bundling it with monetisation of infrastructure assets such as highways, railway assets, ports, and power transmission lines through instruments like infrastructure investment trusts (InvITs).

During FY26, disinvestment activity was largely restricted to minority stake sales , including a notable divestment of around ₹5,000 crore in Mazagon Dock Shipbuilders. Several planned strategic disinvestment transactions were deferred, contributing to the shortfall against the original budget estimate.

Alignment with Economic Survey Recommendations

The higher FY27 target aligns with the thrust of the Economic Survey , which advocated a redefinition of the public sector’s role. The Survey emphasised giving the government greater flexibility to dilute stakes in listed PSUs while retaining strategic control where necessary. Officials indicated that the revised target reflects expectations of improved market sentiment, better valuations, and a more robust transaction pipeline.

Important Facts for Exams

• Disinvestment and monetisation proceeds are classified as miscellaneous capital receipts.

• Asset monetisation covers infrastructure like roads, railways, ports, and power assets.

• Minority stake sales involve partial dilution without management transfer.

• Strategic disinvestment includes transfer of management control.

Execution Challenges and Market Outlook

While the ₹80,000 crore target signals strong intent to bolster non-tax revenues and support fiscal consolidation, analysts caution that execution remains the key risk . Past underperformance highlights the importance of timely approvals, regulatory clarity, and favourable capital market conditions. Ultimately, the credibility of the target will hinge less on its size and more on the government’s ability to close deals efficiently in a dynamic market environment.