Let Me Tell You A Joke about Budget 23-24

 National Investment Fund, old wine in old bottles.. Just new Drunks have arrived . 

Don't need to be alarmed and salute everyone around because you heard the "National" word here. This is a fund that was created in 2005, under Department Of investment and Public Assets, Finance Ministry of India, to do disinvestment (opposite of what department name suggests).

This masterpiece of ambiguity was a 2016 renaming Masterstroke by M/s Modi Jaitley gang in 2016. Earlier it was Department of Disinvestment only. Nevertheless they have never met their disinvestment targets, which was bloated up every year to make Budget Income look good.

Now there were some objectives given while doing divestment, primary was Government shareholding does not fall below 51%.

 IDBI Bank looks Dumb Media's apple of the eye in this year's Divestment calendar.

I'm sorry to say but IDBI bank's future doesn't look that rosy to me and I do have serious concerns about it's books.

Government hushed up the huge NPA by putting LIC as major shareholder (49.5%) and Government having (45.5%) next biggest chunk of shares .  So only 5% shares is among the public and still the share price can't hold on it's own. Post budget speech announcement of its Government divestment, it fell again.

Perhaps because of its association with LIC and Mr. "Dubious" M.R. Kumar, LIC chairman as it's Chairperson and their relationship with Adani stocks. Actually LIC stocks fell by 8%+, while IDBI bank fallen 3.4%.

 Now Since Government can't use NIF route, if it is not holding more than 51% of shares of Central Public Sector Unit. But lets assume they will change  the rule, how much can the whole sale attract? 

Total Market Cap of this bank is now 543 Billion Indian Rupees, so roughly 250 Billion max is Government's direct asset value. Given that market will again get flooded with share, real value that government is going to get is much less.

As Government must have understood by LIC IPO, where it got much lesser amount than issue price. So how would this divestment target of 510 Billion will be met?

Why Do Indian Journalists behave like they are newbies on Budget day?

 They are going Ga-Ga that "National Investment Fund" will make grand infrastructure.. well, that's what it was created for in 2005.

This is the same fund that was supposed to build smart-cities and bullet trains too.

But this fund was also used for Government Bank and Insurance Companies' recapitalisation. 

This year, Minister has added this fund will invest in Education and Health sector also. Wow, nobody knows when these "Family Silvers" will be sold or how much they will fetch but they have plans to invest in Education & Health, Have they acquired the land for that?

Does they have blueprint of what they are going to build? 

Or will this be "Foundation Stone Laying Ceremonies" only, specially before Election?

Every Budget covering Journalist must know, Current fiscal years' revised target of 500 Billion INR is not being met. About 311 Billion INR has been raised. Just took the screenshot from Government website and figure still stands as same, as it was when I decided write this post.

 This Media, This Government, Those false promises, these budgets .. everything looks so Orwellian now.