What is one primary objective of disinvestment in public sector enterprises?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. To generate revenue for the government.
- One of the primary objectives of disinvestment in public sector enterprises is to generate revenue for the government.
- This disinvestment strategy is designed to reduce the financial burden on the government’s treasury. It helps generate funds that can be allocated to specific purposes, such as bridging revenue shortfalls from other sources.
- Objectives Of Disinvestment Policy
- Reduce the financial burden on loss-making and sick PSUs.
- Promote private ownership and efficient use of government assets.
- Improve market discipline, foster competition, and encourage new enterprises.
- Reduce political interference in essential services.
- Push public enterprises to upgrade technology and become competitive.
- Rationalize the workforce and provide re-training opportunities.
- Enhance expertise and capacity in Research & Development (R&D).
- Encourage diversification and expansion strategies for growth.