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Sinha admits economy is in trouble

Parliament today approved the Appropriation Bill (number 4) with the Rajya Sabha returning it following an assurance by Finance Minister Yashwant Sinha that India is not in economic trouble and the government is taking all possible measures to cut the fiscal deficit.

In his reply to the debate on the bill, the finance minister said that though the government is facing some problems on the economic and fiscal fronts, there is no cause for worry.

The bill was approved by a voice vote as the Lok Sabha had done earlier.

Sinha said no one could deny that the Indian economy is facing problems. Exports are declining, inflation has gone up, and there is a problem with indirect taxes.

But he said the government is committed to gain complete control on fiscal discipline. The ministries are also making all efforts to remain within budgetary limits.

He said the government's worry is the rise in inflation and collection of indirect taxes.

Initiating the discussion on the bill, Santosh Bagrodia (Congress) urged the government to draw up a plan for all those people who are opting out of employment under various voluntary retirement schemes. He said if the government could not use this workforce, there is every possibility of these people opting for crime.

He drew attention to the fact that not a paisa has been sought for any productive work through the Appropriation Bill. He feared that a major chunk of the fund that has been sought would be used to pay workers opting for the voluntary retirement schemes of public-sector undertakings.

Ram Das Agrawal (BJP) said new industries are not coming up and old ones are being bought over by multinational corporations. He wanted the finance minister to ensure that Indian companies are not taken over by foreign firms and that new industries are set up. He urged Sinha to take strong steps to increase exports and avoid a situation in which the rupee has to be devalued.

Jibon Roy (CPI-M) said the growth rate of the economy has declined as has the production of food grain. Unless there is sustained growth in agriculture, there can be no growth in industry, he said.

He accused the government of pursuing the capitalist path, and stressed the need for taking up land reforms if economic reforms are to succeed.

UNI

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