Selling off a part of the equity of a Public Sector Enterprise (PSE) to the public is called ______

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SSC GD Constable Memory Based Test (7 Feb 2023 Shift 1)

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Answer 1

The correct answer is Disinvestment.

Key Points

Selling off a part of the equity of a Public Sector Enterprise (PSE) to the public is called Disinvestment.
Disinvestment means the sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources.
Funds from disinvestment would also help in reducing public debt and bring down the debt-to-GDP ratio while competitive public undertakings would be enabled to function effectively.

Additional Information

Term	Description
Communisation	Communisation is the destruction of the commodity form and the simultaneous establishment of immediate social relations between individuals.
Nationalization	Nationalization usually refers to private assets or to assets owned by lower levels of government (such as municipalities) being transferred to the state
Delimitation	Delimitation literally means the act or process of fixing limits or boundaries of territorial constituencies in a country or a province having a legislative body.