Hiding incompetency by divestment of state run companies to the tune of Rs.80,000 crore.I was going through the budget for 2019 when I just happen to see a very interesting point which we generally overlook as we are mostly interested in tax rates, deduction, rebates, benefits for women, etc., The point was regarding disinvestment target of Government for the current Financial year 2018-19 i.e around 80,000 crores.
Just looking at the figure my mind started to dwindle as this gave me an impression that as to how much the government has invested in state run as well as centre run companies. Disvestment is actually good as the capital expenditures will be reduced and the money realised can be used for more productive work. But this also gave an impression of the incompetency of the government sector ubitsvas they are unable to utilise the huge potential they have in form of capital investments
Not only divestment but also many of Government companies are put on sale as in case of Air India, which on date remain unsold.any more government companies have been put up for sale like HLL Lifecare Limited and many more.
If we try to understand the impact of the incompetency of these government run companies on general public them it can be made out that the fund collected from us in the form of tax is invested in these companies to generate more employment and bring about development but on the contrary the money gets stuck in capital items and no revenue is generated and atlast after wasting many years of resources these company are divested. Thereby either shutting them down or giving them to private players to run it effectively. In addition government takes credit that they have plugged the cap on revenue leakage wherein they have failed to manage and grow the company they initially setup.
Is government trying to gain brownie points even where it has failed miserably.