Token privatisation, Microeconomics

Assignment Help:

Token Privatisation: This implies the sale of 5 per cent or 10 per cent shares of a profit-making public sector enterprise in the market with the objective of obtaining revenue to reduce budget deficit. This is also referred to as ‘deficit privatisation'. Finance Ministers in India have been undertaking such privatisation to reduce their budget deficits. This policy has also been referred to as ‘disinvestment'. It was customary for finance ministers to set targets for disinvestment during a year. It may be noted that total receipts from disinvestment were of the order of Rs. 45,035 crores in 2003-04 and the total investment in Central Government enterprises was of the order of Rs. 3,33,475 crores in 2003. Thus, total disinvestment proceeds work out to be 13.5 per cent of total investment in PSUs. The entire proceeds were used to finance budget deficits. Consequently, this kind of disinvestment was severely criticised because these were the highly profitable PSUs which were disinvested. It was compared to ‘selling the family silver to pay the grocer's bills'.

 


Related Discussions:- Token privatisation

Economics and potlatch, I have 3 questions regarding the economics of potla...

I have 3 questions regarding the economics of potlatch, 1.) What is the economic purpose of potlatch? I don''t fully understand this question... I believe potlatch is a gift econ

Indifference curves between consumption goods and leisure, How many hours w...

How many hours will an individual allocate to leisure if their indifference curves  between consumption goods and leisure are concave to the origin? Show in figures and explain in

Profit after tax, #queIn a particular year, an organization earns cash reve...

#queIn a particular year, an organization earns cash revenues of Rs. 2,00,000. Total material and labour expenses are Rs. 1,09,000. The depreciation claimed on the equipment is Rs.

Calculate price and average total cost atc, 1. Through graphs describe the ...

1. Through graphs describe the relationship between the price, P , and the average total cost, ATC , for a firm in perfect competition when it earns an economic profit; earns a n

Reverse logistic behaviour of supply chain, Purpose: this case is intended ...

Purpose: this case is intended to model supply chain, especially the reverse logistic behaviour. Description: In Cal Poly Pomona, TOM301 (Operations Management) is a core cou

Production possibilty curve, why is the point outside the production possib...

why is the point outside the production possibility curve(PPC)called unttianable

Trends of national income, TRENDS OF NATIONAL INCOME: Estimates relati...

TRENDS OF NATIONAL INCOME: Estimates relating to India's national income and per capita income are available to us for each of the years beginning 1950-51. These estimates are

Cross price , Calculate the cross-price elasticity of demand between comput...

Calculate the cross-price elasticity of demand between computers and printers, where a 10 percent decrease in the price of computers results in a 15 percent increase in the quantit

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd