Explore ways other than divestment of PSUs to curb deficit: UD Choubey

NEW DELHI: Public sector body SCOPE today said the government must explore options other than the disinvestment of PSUs for containing the fiscal deficit within its target of 4.1 per cent for the current fiscal.

"For meeting the deficit target of 4.1 per cent, instead of disinvestment of PSUs, other ways should be examined by way of improving the productivity and overall governance," SCOPE Director General U D Choubey said.

Disinvestment proceeds are vital to the exchequer to lower the fiscal deficit.

Finance Minister Arun Jaitley yesterday raised the disinvestment target for the current fiscal to Rs 58,425 crore.

The target includes Rs 43,425 crore through stake sale in PSUs and another Rs 15,000 crore from sale of residual stake in the erstwhile government companies, as per the Budget document.

Choubey also advocated that over and above developing 100 Smart Cities, there is need to develop 10,000 Smart Villages to improve the rural economy.