With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements:1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.2. The National Investment Fund is to be maintained within the Consolidated Fund of India.3. Certain Asset Management companies are appointed as the fund managers.4. A certain proportion of annual income is used for financing select social sectors.Which of the statements given above is/are correct ?
✓ Correct answer: c) 3 and 4
ExplanationThe National Investment Fund (NIF) was created in India to receive the proceeds from the disinvestment of public sector undertakings (PSUs).The idea was to use these funds stra- tegically for social sector development and investment.Statement 1 is incorrect: the NIF’s assets were managed by selected public sector mutual funds, namely UTI Asset Man- agement Company Ltd., SBI Funds Management Private Ltd., and LIC Mutual Fund Asset Management Company Ltd., not directly by the Union Ministry of Finance.Statement 2 is incorrect: The NIF was kept outside the Con- solidated Fund of India.This was done to ensure that the disin- vestment proceeds were used for their intended purpose (social sector development) and not simply absorbed into general gov- ernment expenditure.Statement 3 is correct: The Government appoints Asset Man- agement Companies (AMCs) from the public sector to manage the fund.Statement 4 is correct: 75% of the annual income from NIF is allocated to social sector schemes (education, health, em- ployment).25% is used for capital investment in profitable/ revivable CPS
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