15 Views

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


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Sale of government assets or shares in public sector enterprises


Solution : The correct answer is (b) Sale of government assets or shares in public sector enterprises.

In the context of the government budget, the term "disinvestment" refers to the process of selling government-owned assets or shares in public sector enterprises (PSEs) to private entities or the public. This action aims to reduce the government's ownership and control in PSEs and can be done through methods such as Initial Public Offerings (IPOs), strategic sales, or auctions.

Disinvestment is a way for the government to raise funds and reduce its financial burden. By selling government assets or shares, it brings in revenue that can be used for various purposes, such as reducing fiscal deficits, financing development projects, or meeting other expenditure requirements.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
VIT Bhopal University | M.Tec...
Apply
M.Tech admissions open @ VIT Bhopal University | Highest CTC 52 LPA | Apply now
Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Great Lakes PGPM & PGDM Admis...
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books