As the Disinvestment Commission has observed, “the essence of a long-term disinvestment strategy should be not only to enhance budgetary receipts, but also minimise budgetary support towards unprofitable units. Also, it must ensure the long-term viability and sustainable levels of employment in such units.”
Identify the sector, whose disinvestment is being referred to in the statement.
As the Disinvestment Commission has observed, “the essence of a long-term disinvestment strategy should be not only to enhance budgetary receipts, but also minimise budgetary support towards unprofitable units. Also, it must ensure the long-term viability and sustainable levels of employment in such units.”
Identify the sector, whose disinvestment is being referred to in the statement.
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Solution and Explanation
The statement speaks of budgetary support to unprofitable units, long-term viability of such units and the level of employment in them.
These words describe government-owned enterprises that are running at a loss.
Step 2: Link it with disinvestment:
Disinvestment means the government sells a part or all of its stake in a company it owns.
Only state-owned companies can be the subject of such a sale by the government.
Final Answer:
The statement refers to the public sector.
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