With the proposed proceeds from selling stake in IDBI Bank, the amount under ‘Miscellaneous Capital Receipts (MCR) is set to exceed the budget estimates for Fiscal Year 2026-27. Also, the proceeds from disinvestment will be the highest after 2018-19 and if minority stake sale in CPSEs continue, it could exceed ₹1 lakh crore, for the second time between 2014-15 and now.
What is significant is that this mop up will provide relief to government finances at a time when collections from excise are set to be down while expenditure on subsidy and on other welfare scheme is set to go up. “This completion was hanging for five years. The Cabinet decision has to be honoured. This decision is not solely aimed at boosting government finances but certainly, it will help the exchequer,” a top government official told businessline.
The term ‘Disinvestment’ is now out from the budget document. Rather, the term MCR has replaced disinvestment proceed and been widened. It includes proceeds from share sale (minority stake sale, strategic disinvestment or buy back) of Central public sector enterprises (CPSE) and mop up through asset monetisation. For fiscal year 2026-27, the government has estimated to collect ₹80,000 crore under MCR. With expected earning of ₹26,500 crore, the proceed under the head MCR will exceed ₹90,000 crore, as on date the highest after ₹84,927 crore mop up in fiscal year 2018-19.
Revenue collections through direct taxes, custom duty and GST have been good so far, but there is an issue about central excise. On May 25, Finance Minister Nirmala Sitharaman had said that the government is estimated to take a revenue impact of over ₹1 lakh crore in fiscal year 2026-27 after the central excise duty cut on petrol & diesel by ₹10 per litre. During the first five months of the current fiscal, expenditure has already gone up by 10 per cent.
At the same time, 46 per cent of the budget estimates on major subsidies (food, fertiliser and fuel) have been exhausted in just first five months of the current fiscal. Now the expectation is that outgo on fertiliser subsidy to go up. At the same time, considering high food inflation, any kind of duty relief and support through subsidy or price stabilisation fund will need additional resources.
Officials feel higher mop up through nontax revenue and capital receipt (including MCR) along with some addition to custom duty revenue (because of higher duty on gold and silver) can provide some relief. Still, economists feel that considering increasing uncertainty, additional revenue measures will be big help for the government finances.
Published on October 14, 2026
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