What has been the criticism of the disinvestment of public sector enterprises (PSEs)?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Undervaluation of PSE assets
Critics argue that the assets of PSEs have been undervalued and sold to the private sector, resulting in substantial losses for the government. The proceeds from disinvestment are often used to offset revenue shortages rather than being utilized for the development of PSEs and social infrastructure.