Union Budget 2026-27 Sets ₹80,000 Crore Divestment and Monetisation Target

The Union Budget for 2026-27 has set a target of ₹80,000 crore under miscellaneous capital receipts. This head includes proceeds from disinvestment in public sector undertakings (PSUs) and asset monetisation. The target is a sharp increase over recent years, when collections have remained below Budget estimates. 

In 2025-26, the government had budgeted ₹47,000 crore from miscellaneous capital receipts. This was later revised down to about ₹34,000 crore after inflows remained weak through the year. Actual receipts in 2024-25 were lower at ₹20,214 crore. 

Revised Reporting Framework 

Since FY24, the Budget has not carried a separate disinvestment number. Instead, proceeds from stake sales and asset monetisation have been reported together under miscellaneous capital receipts. This includes receipts from equity dilution in PSUs as well as monetisation of physical assets. 

Assets identified for monetisation include roads, railways and power infrastructure. These are typically monetised through investment trusts and other structured arrangements, while the assets continue to be used for public services. 

Focus on Asset Monetisation 

At the post-Budget press conference, Department of Economic Affairs secretary Anuradha Thakur said the government was working on strengthening its asset monetisation plan. She said a pipeline had already been prepared earlier and the focus was now on converting that pipeline into actual receipts. 

Officials said monetisation would be taken up in phases, depending on asset readiness and market conditions. 

Disinvestment Activity in FY26 

Disinvestment activity in FY26 remained limited. Most transactions were minority stake sales through offers for sale in listed PSUs. These included a divestment of around ₹5,000 crore in Mazagon Dock Shipbuilders and smaller stake sales in other companies. 

Several proposed transactions were deferred during the year. These included the strategic sale of IDBI Bank, which did not move forward within the fiscal. 

Status of Approvals 

The Department of Investment and Public Asset Management said approvals have been granted for around 50 cases covering disinvestment and closures.  

About half of these have been completed so far, including 12 closures and 13 strategic disinvestment transactions. The remaining cases are under various stages of processing. 

Read More: Union Budget 2026: FM Announces a Record ₹12.2 Lakh Crore for Capex in FY27! 

Conclusion 

The ₹80,000 crore target for 2026-27 represents a step-up from recent outcomes. Actual receipts will depend on the timing of transactions and execution during the year. 

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