Question : The government's disinvestment refers to the ____________.
Option 1: Sale of shares in public sector enterprises
Option 2: Reduction in defense expenditure
Option 3: Repayment of external debt
Option 4: Increase in indirect taxes
Correct Answer: Sale of shares in public sector enterprises
Solution : The correct answer is (A) Sale of shares in public sector enterprises.
Disinvestment is the process through which the government sells its equity or ownership stake in public sector enterprises (PSUs) to private entities or the public. It involves the transfer of ownership and control of the PSU from the government to private shareholders.
The purpose of disinvestment can vary and may include objectives such as raising funds for the government, promoting private sector participation, improving the efficiency and competitiveness of PSUs, and reducing the government's financial burden.
Question : The term "disinvestment" in the government budget refers to:
Option 1: Reduction in public expenditure
Option 2: Sale of government assets or shares in public sector enterprises
Option 3: Increase in subsidies
Option 4: Borrowing from international financial institutions
Question : Disinvestment refers to the sale of government equity or shares in:
Option 1: Public sector enterprises
Option 2: Private sector enterprises
Option 3: Foreign sector enterprises
Option 4: Cooperative sector enterprises
Question : Which of the following is a revenue receipts?
Option 1: Profit of public sector undertaking
Option 2: Sale of public sector undertaking
Option 3: Disinvestment
Option 4: Rise from sale of shares of public sector undertaking
Question : The government's revenue receipts include ____________.
Option 1: Grants-in-aid
Option 2: Dividends from public sector enterprises
Option 3: Repayment of loans
Option 4: Sale of government assets
Question : The government's non-plan expenditure includes ____________.
Option 1: Subsidies
Option 2: Grants for specific projects
Option 4: Investments in public sector enterprises
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