1.   Disinvestment:

It refers to the act of selling assets of a subsidiary or a sale by the government of a government owned enterprise. This is done for raising resources to meet normal expenditure of running the government or for special projects like giving additional capital to banks.

Divestment is hence considered a kind of non-tax revenue. The finance minister announces the expected amount to be raised during the financial year.

 2.   Subsidies:

This refers to the amount spent by the government in order to reduce the price of some goods less than the market value. Subsidy is usually given on food products, Read more...