Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q47: Consider the following regarding the Disinvestment targets in recent budgets:

Assertion (A): In Budget 2026-27, the government has set a modest disinvestment target, moving away from aggressive privatization targets.
Reason (R): The strategic focus has shifted towards "Value Enhancement" of Public Sector Enterprises (PSEs) through dividends and buybacks rather than outright sale.
A
Both A and R are true, and R is the correct explanation of A
B
Both A and R are true, but R is NOT the correct explanation of A
C
A is true, but R is false
D
A is false, but R is true
✅ Correct Answer: A
Both are True and Linked.
The Union Budget 2026-27 continues the trend of modest targets (avoiding "Fire Sales"). DIPAM's strategy has shifted to enhancing the market value and dividend yield of CPSEs rather than aggressive privatization.