Question

Disinvestment refers to:

Options

• Repayments of loans given by the government

• Sale of the government's stake in Public Sector Enterprises (PSUs), reducing financial assets

• Mobilisation of public savings by the government

• Borrowings of the government from the market

Answer 1

Disinvestment is the sale of the government's stake in Public Sector Enterprises (PSUs). By disposing of its stake, the government reduces its financial assets.