Do you think that the Government of India should constitute an independent commission to handle effectively the task of monetisation of assets? Discuss (200 Words)
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IAS Parliament 5 years
KEY POINTS
In the budget, the government proposed to launch a ‘National Monetisation Pipeline’ to assess the potential value of underutilised and unused government assets.
Why Monetisation
· The global pandemic impacts the economy and turns it into an economic crisis.
· It forced the government to increase spending to provide essential relief to vulnerable sections of the society.
· Public sector-owned assets would be an important financing option for new infrastructure construction.
· It is looking to monetise physical assets namely land, building, road, railway stations, immovable enemy properties etc.
Independent commission
· The government is looking at the Real Estate Investment Trusts (REITs) model for monetisation of assets.
· Under REITs, the land assets are transferred to a trust providing investment opportunity for institutional investors.
· The government has another option to lease or rent out the assets instead of going for monetisation.
· The government has opted for another option, which is monetisation, and it will generate one-time non-debt capital receipts.
· To handle effectively the task of monetisation of assets, the government should constitute an independent commission implement its monetisation initiative.
Dev 5 years
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IAS Parliament 5 years
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