SSC Economics Sample Paper NCERT Sample Paper-1

  • question_answer
    Which of the following is not one of the objectives of disinvestment in public sector enterprises?

    A)  To consolidate public sector enterprises to facilitate disinvestment

    B)  To protect interest of employees

    C)  To expand the ownership base of the public sector enterprises

    D)  None of these

    Correct Answer: D

    Solution :

    [d] The following are the main objectives of the disinvestment policy of the Government.
    (i) To reduce the financial burden on the Government.
    (ii) To improve public finances.
    (iii) To encourage wider share of ownership.
    (iv) To introduce, competition and market discipline.
    (v) To depoliticise essential services.
    (vi) To help public enterprises upgrade their technology to become competitive.
    (vii) To rationalise and retrain their workforce.
    (viii) To build competence and strengthen their R & D.
    (ix) To initiate diversification and expansion programmes. Thus, the disinvestment is aimed to reduce or mitigate fiscal deficit, bring about a measure of economic stabilisation or to improve efficiency in public enterprises through structural adjustments initiated to improve their efficiency and productivity.

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