Govt. can sell PSU land, reduce majority stake to boost non-tax revenue: CEA

  1. The Chief Economic Adviser(CEA)has said that government can sell land held by PSUs and potentially reduce its majority stake in some companies to make up for the significant shortfall in tax revenues.
  2. According to the figures in the Economic Survey 2019,the government is expected to receive as much as ₹1.6 lakh crore less than what was estimated in the interim Budget.
  3. The interim Budget had pegged the government’s receipts in 2018-19 at ₹17.2 lakh crore while the Economic Survey’s provisional actual figures show this will be only ₹15.6 lakh crore.
  4. The CEA has also suggested that the government could reduce its holdings in some PSUs to below the majority stake of 51% of direct control.