Budget 2026-27: FM Nirmala Sitharaman for 'a lot more on disinvestment'

Says IBC amendment Bill will come up in second half of Budget session

Union Finance Minister Nirmala Sitharaman on Monday said the pace and direction of disinvestment and asset monetisation should set the tone for revenue generation in the coming financial year.

 

“There is no change in the divestment plan. The pace and direction of disinvestment should set the tone for revenue generation. There should be a lot more on disinvestment, by bringing more public float from CPSEs (central public sector enterprises) and asset monetisation. The revenue generation numbers for FY27 are realistic,’ Sitharaman told reporters, a day after presenting the 2026-27 Budget.

 

The new Union Budget has set an ambitious disinvestment target of ₹80,000 crore under miscellaneous capital receipts, which include the sale of shares in CPSEs as well as asset monetisation. However, in FY26 the government is set to fall short of its budgeted target of ₹47,000 crore, prompting a sharp downward revision to ₹33,837 crore in the revised estimates.

 

Sitharaman said the stake sale in IDBI Bank will happen, without giving a timeline.

 

On the Insolvency and Bankruptcy Code (IBC) amendment Bill, the finance minister said she expects to bring the Bill in the second half of the ongoing Budget session. The parliamentary select committee had submitted its report in December. “I expect, subject to conditions, to table the IBC (Amendment) Bill in the second half of the Budget session starting March 9, incorporating suggestions of the committee,” said Sitharaman, who also holds the corporate affairs ministry portfolio.

 

About fiscal consolidation, she said it will depend on each year’s situation, with the priority being maintaining growth momentum. “I would like to see how it goes next year,” she added.

 

On allowing special economic zones to sell in the domestic tariff area, Sitharaman said it is a one-time and “temporary” measure. “They can only sell a proportion of their exports that is yet to be decided. They also have to remain exporters,” noted the minister.

 

On the Budget proposal of champion micro, small, and medium enterprises (MSMEs), the finance minister said the focus will largely be on medium enterprises. “Small ones have to be encouraged to grow bigger as well. We want to ensure we give support to the medium enterprises to grow if they want to grow and become big,” she said.

 

Sitharaman said the volatility in gold prices is due to global uncertainty, and many central banks are investing in gold. “It also shows that investors do not have confidence in any one particular currency and hence the rush to buy gold,” she added.