Cpses

Central Public Sector Enterprises (CPSEs) and State governments also constitute the public sector.

CPSEs are of special relevance for this analysis because, in its bid to make fiscal math more transparent and relevant, the Government has shifted a portion of its off-book transactions into the fiscal accounts over the past 2-3 years.

DIPAM said that the offer-for-sale (OFS) route has been actively pursued by the government for divesting its shareholding in CPSEs.

Is there any proposal to improve the perception of CPSEs in the market?

CPSEs are a major contributor to public procurement of goods and services.

Describing the strategic sale of CPSEs as a major reform, Assocham said the decision reflects the clear mind set of the government about steadily moving out of businesses.

In terms of capital expenditure, the government expects that overall CPSEs capex for the rest of fiscal to be over Rs 1 lakh crore.

The combined capital expenditure by the Central Public Sector Enterprises (CPSEs) and Departmental Undertakings (DUs) such as the NHAI and the Indian Railways contribute in substantial measure to fixed assets creation in the economy.

These additional resources required to contain fiscal deficit are expected to come from increasing reliance on off-budget financing, extraction of surplus earnings of CPSEs, banks and the RBI and higher disinvestment receipts.