Which of the following was NOT an advantage of privatisation?

The correct option is Reduced competition.

Privatization refers to the transfer of ownership, management, and control of public sector enterprises (government-owned) to private sector entities. To understand why "Reduced competition" is not an advantage, let us evaluate the impacts of privatization:
1. Additional source of revenue for the government: When the government sells its shares or assets in public enterprises, it generates significant financial resources. This is a direct financial advantage for the state treasury.
2. Low interference of political motives: Unlike public enterprises which may suffer from political interference, private enterprises are guided by profit motives and commercial viability. This leads to faster and more objective decision-making, which is a major advantage.
3. Overall improved performance: Private enterprises typically operate with higher managerial efficiency, cost-effectiveness, and customer orientation to survive in the market, leading to improved performance.
4. Reduced competition: In general, privatization promotes healthy market competition by allowing multiple private players to enter the industry. A reduction in competition is a negative market outcome (often leading to monopolies, high prices, and poor service quality) and is therefore a disadvantage rather than an advantage. Thus, "Reduced competition" is NOT an advantage of privatization.