January 24, 2023

Source: economictimes.indiatimes.com

The Finance Ministry has asked various ministries and departments to give a report on the progress of Asset Monetisation during the pre-budget consultations starting from October 10.

In a letter dated September 6, the Department of Economic Affairs has asked the ministries to give a detailed explanation on the pace of asset monetisation.

In FY22, the Centre managed to exceed its target of Rs 88,222 crore by achieving Rs 96,000 crore largely driven by mines auctions, NHAI road assets and power sector assets.

For the current fiscal year, the Centre has set a target to raise Rs 1.62 lakh crore from asset monetisation. Achieving this target remains critical to push for the capex and to stick to the fiscal path.

Last month, the Finance Ministry in its Monthly Economic Report had suggested for vigorous asset monetisation at all levels to weather the global headwinds and increased expenditure.

However, by September 15, ministries were able to raise only Rs 26,800, much below the expectation level of the centre.

The Finance Ministry will use the pre-budget meeting to nudge ministries to speed up their monetisation drive.

The pre-budget meeting started today to decide on the revised estimates (RE) of expenditure for the ongoing financial year and the fund requirement for 2023-24.

The month-long deliberations would continue till November 10, as per a notification of the Budget Division of the finance ministry. The centre will finalise the Revised Estimates by January 11.

The Budget 2023-24 is likely to be presented on February 1, during the first half of Parliament’s Budget session.

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