Let’s take a look at the important aspects one by one –
What is privatisation?
Privatisation is the process of transferring the ownership of the government owned units to the private players. After this process, the government is no longer in charge of the sold unit.
Why is the government privatising?
The governments usually decide on privatisation when they want to monetise their asset base. Privatisation is also aimed at efficient and better management of the available resources.
What is being privatised?
As per the major announcements related to the privatisation, two public banks are going to be privatised. They will be selected by NITI Ayog through a process that will include the considerations of certain secretaries and ministers.
What are the cons?
When the state owned assets are sold to the private players, there is always a fear that the monopoly power can be exploited. The public interest may also be ignored and profit becomes the only motive.
What are the pros?
The brighter sides are that the privatisation leads to less interference from politicians. Thus, improved efficiency is expected. As a government may think about the next election term, however when the private players own the entity they have long term goals about it.
After the announcements in the recent budget, there has been a rage on social media regarding the privatization of Public Sector Banks by the government. Due to the decisions of the last few years, there are now 12 out of 28 Public Sector Banks left in the country. The youth and the teacher community are worried about the decreasing govt jobs. Also, the bank officials are not in the favour of the decision and are organizing Bank Strikes to show their anger.
Let us see what changes could be brought about by such social media trends.
Will the government be forced to rethink its decisions? Only time will tell
What do you think about this whole issue, do let us know in the comment box below.