Having raised only 20% of the amount targeted through disinvestment in the current fiscal year, the Finance Ministry is still lagging far behind by Rs 50,000 crore.

So far, the government has raised only Rs 12,600 crore by selling its stake in four public sector undertakings (PSUs) as against the target of Rs 69,500 crore for 2015-16.

"There would be at least Rs 50,000 crore shortfall with regard to disinvestment target. The government would meet the shortfall through taxable, non-taxable revenue mop-up," an official source told PTI.

The ministry is expecting to make up for the shortfall by increasing revenue from other sources.

The Modi government had planned to raise Rs 69,500 crore through disinvestment in the current financial year, of which Rs 41,000 crore was targeted from minority stake sale and Rs 28,500 crore from strategic stake sale.

Poor stock market conditions have forced the government to delay stake sale in PSUs. It has been able to sell stake in just four PSUs -- Indian Oil, REC, PFC and Dredging Corp -- raising Rs 12,700 crore.

The benchmark stock index had plunged by more than 1,600 points on the day of stake sale in IOC. The BSE Sensex faced its biggest one-day fall in the past seven years on that day.

However, the government-owned insurance major, Life Insurance Corporation of India (LIC) stepped in to rescue the government's 10% stake sale in IOC by buying 86% of the shares.

Similarly, the PFC stake sale took place on the day when the Sensex fell by over 550 points.

However, it is likely to meet the shortfall in disinvestment target by increasing duties and asking higher dividends from PSUs. The government has hiked excise duty on fuel prices this year to increase its revenue by Rs 2,500 crore.

The government raised about Rs 25,000 crore in 2014-15 through disinvestment as against the target of Rs 58,425 crore. It has failed to meet the disinvestment target for the past five consecutive financial years.

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