BJP government is planning to seek cabinet’s approval to sell 25% stake in the nation’s largest life insurer, LIC. People with knowledge of the matter said, as Prime Minister Narendra Modi seeks resources to plug a widening budget gap. A stake sale in LIC through a public offering of shares will help the government bolster its finances after the coronavirus pandemic stalled growth and threatens the fiscal deficit target of 3.5% of gross domestic product set for the year ending March 2021. The administration has raised about ₹5,700 crore through asset sales in the fiscal year from April 1, as against a target of ₹2.1 trillion. The government will also move an amendment in parliament for an authorized capital of ₹20,000 crore which will be divided into 20 billion shares. The government plans to amend the act of parliament under which the state-run Life Insurance Corp. of India was set up to prepare for the sale, the people said, asking not to be identified as the discussions were private. The timing of the insurer’s initial public offering will be depend on market conditions, and the sale is likely to be done in tranches, they added.