| No change in Government policy regarding multilaterally funded projects in various Sectors or States | |
| 19:21 IST | |
| Attention of the Government has been drawn to the news item appearing in a section of press today stating that 'India succumbs to Chinese Pressure on Arunachal at WB Meet'. It is categorically stated that India has made no commitment to any one including to the World Bank that India would not pose projects pertaining to Arunachal Pradesh for funding from any Multi lateral Development Bank. It has been Government 's clear and consistent position that Arunachal Pradesh is an integral and inalienable part of India. In the World Bank, as also at other International Fora, countries collaborate and co-ordinate their stand. India and China are prominent members of G-20, BRIC, BASIC, etc. The Executive Directors or representatives of India and China at the WTO, World Bank, IMF and other bodies have continuous discussions and running dialogue on various issues. No such discussion or dialogue can be termed as conclusive official stand or commitment, till it has been formally approved by the Government. There has been no change in policy regarding multilaterally funded projects in various Sectors or States including projects that are mentioned in this news report. BSC/AK/105- 2010 Report Card of Ministry of Home Affairs for November, 2009 The Union Home Minister Shri P. Chidambaram presented the Report Card of the Ministry of Home Affairs for November, 2009 here today. Following is the text of the Minister's statement:
"As I complete one year as Home Minister, I am happy to present the 12th monthly report of the Ministry of Home Affairs. This is for the month of November 2009.
The highlight of the month was the commencement of the electoral process in Jharkhand. The Legislative Assembly was dissolved on November 1, 2009 and a five-phase election schedule was announced by the CEC. 225 Coys of CPMFs and 85 Coys of various SAPs/IR Bns/Border Wing Home Guards have been deployed in Jharkhand to ensure free and fair elections. The CPI (Maoist) has called for a boycott of the elections and has unleashed violence, mostly targeted at school buildings that will house polling stations. The most effective answer that the people of Jharkhand can give to the CPI (Maoist) is to turn out in large numbers and elect candidates of their choice.
Another important event was the tabling of the Liberhan Ayodhya Commission of Inquiry Report and the ATR in Parliament on November 24, 2009.
I visited Deoband, Uttar Pradesh on November 3, 2009 and addressed the Annual Conference of the Jamiat Ulema e Hind.
I visited Jammu on November 4, 2009 in order to make an assessment of the implementation of the rehabilitation package for Kashmiri Pandits and of the general security situation. I am happy to say that two proposals for shooting of films in J&K were approved and permission granted to the producers. The European Union's Troika Mission visited that State and declared that "Kashmir is an integral part of India."
I visited Jaipur on November 15, 2009 to attend the Twentieth All India Forensic Science Conference. It is my intention to pay special attention to Forensic Science Laboratories in the year 2010.
I visited Mumbai on November 26, 2009 and participated in a number of events in remembrance of the victims of terror.
On November 29, 2009, Ministry of Home Affairs sponsored a programme at the India Gate Lawns titled "Nation in solidarity against terror." It was telecast live on many channels and I thank the media, especially the TV channels, for their support.
Internal Security Two United Liberation Front of Assam (ULFA) leaders, namely, Chitraban Hazarika and Shashadhar Chowdhury, surrendered to the BSF in Tripura on the India-Bangladesh border area during the intervening night of November 4/5, 2009.
CPMFs Approval has been granted for: 202 posts for a Field Intelligence Unit for Assam Rifles acquisition of 600 acres of land for the NSG Regional Centre at Hyderabad 781 additional posts for upgradation of six CISF Regional Training Centres the appointment of 326 Assistant Commandants for all CPMFs on the basis of the results announced by the CPF (AC) Exam-2008. the appointment of 232 doctors for all CPMFs on the basis of results announced by the Medical Officers Selection Board (MOSB)-2008. the conversion of 10 CRPF battalions into Law & Order battalions on the lines of the Rapid Action Force. 199 posts in CISF for providing security to the National Police Academy, Hyderabad. The KLP of the newly sanctioned Mahila Battalion of CRPF will be at Nagpur.
The Interim Project Feasibility Report for the CPMF Housing Project to be taken up on a Public Private Partnership (PPP) basis by the MHA has been received from the consultant, CRISIL. A stakeholders' conference was held on November 20, 2009 in which discussions were held with the representatives of the developers and bankers.
Sanctions amounting to Rs. 117.19 crore were issued during the month for various infrastructure works of the CPMFs as follows: CRPF - Rs. 43.65 crore SSB - Rs. 41.65 crore CISF - Rs. 22.18 crore AR - Rs. 09.71 crore
Sanctions amounting to Rs. 46.92 crore were issued during the month for acquisition of land for various establishments of the CPMFs as follows: NSG - Rs. 36.00 crore CRPF - Rs. 10.57 crore ITBP - Rs. 0.35 crore
Border and Coastal Security On the India-Bangladesh border, 25 kms of fencing and 40 kms of new roads were completed in the month of November 2009. Besides, 40 kms of fencing was replaced. Erection of poles for floodlighting works was completed in a length of 66 kms.
On the India-China border, 201 kms of roads are in various stages of construction. 4.6 kms of formation works were completed in the month of November. Forest clearances were obtained for the following four roads: Pulum Sumda (PDA) – Sumla in Uttarakhand Pulum Sumda (PDA) – Mendi in Uttarakhand Sonam – Pulum Sumda (PDA) in Uttarakhand Jung – Mago – Chuna in Arunachal Pradesh
Under the Border Area Development Programme (BAPD), Annual Action Plans have been received from 17 States. The first instalment amounting to Rs. 369.62 crore was released to 15 States, viz., Assam, Bihar, Gujarat, Himachal Pradesh, J&K, Nagaland, Manipur, Meghalaya, Mizoram, Punjab, Rajasthan, Tripura, Uttarakhand, Uttar Pradesh and West Bengal. M/s. GSL Goa and M/s. GRSE, Kolkata are required to supply 84 boats for coastal patrolling and security up to March 2010. 50 boats were delivered upto October, 2009, and 6 more boats were delivered in November, taking the total number of boats delivered to 56. The suppliers are still behind schedule and every effort will be made to impress upon the suppliers the need to deliver all 84 boats by March 2010.
National Investigation Agency The National Investigation Agency (NIA) filed a charge sheet in the case relating to the North Cachar Hills Autonomous Council on November 17, 2009 and in the case relating to seizure of FICN in Mumbai on November 6, 2009. The case relating to David Coleman Headley, Tawahhur Hussain Rana and others was entrusted to the NIA for investigation.
Immigration SFC has approved the Detailed Project Report for Revamp of the Foreigners Division of MHA. The Project is to be implemented over a period of 3 years at an estimated cost of Rs. 19.73 crore. Police Modernisation Under the Modernisation of Police Forces (MPF) Scheme the following have been sanctioned: 4 All Terrain Vehicles at a cost of Rs. 7.95 crore for the BSF. 10,147 assault rifles at a cost of Rs. 144 crore for the CRPF. 1,915 Glock-17 pistols for the CRPF, ITBP, NPA, Delhi Police and Himachal Pradesh Police.
The Centre-State MoU for the CCTNS project has been signed by all 35 States/UTs. An amount of Rs. 42.38 crore has been released to 20 States.
Census 2011 and National Population Register (NPR) Work is in progress on the National Population Register (NPR). Direct data collection for the National Population Register (NPR) is in progress in the coastal villages of Andhra Pradesh, Gujarat, Kerala, Orissa, Puducherry, Tamil Nadu, West Bengal, Maharasthra, Karnataka and Andaman & Nicobar Islands. The biographical details of more than 37 lakh residents and biometric details of more than 8 lakh residents have been recorded.
As regards Census 2011, field survey work for the preparation of geo-referenced enumeration blocks was completed in 1202 wards out of 2018 wards in 33 capital cities.
Notification amending the Citizenship (Registration of Citizens and issue of National Identity Cards) Rules, 2003 was issued on November 9, 2009 for preparation of National Register of Citizens (NRC), 1951 in Assam.
States and UTs Under the Police Modernisation Scheme, Rs. 81.60 crore was released on November 19, 2009 to Delhi Police for FY 2009-10.
Notification for promotion of DANIPS officers of 1996 to 2004 batches to Junior Administrative Grade-I was issued on November 23, 2009.
The IPS cadre The annual batch-size of the IPS was fixed at 130 starting from the Civil Services Examination - 2008. Offers of appointment to 125 successful candidates were issued, with the remaining 5 being under process. Given the shortage of IPS officers at the SP-level in most State cadres and taking into account the average attrition rate, it was decided that from the Civil Services Examination – 2009 onwards, the annual batch-size would be increased from 130 to 150.
Of the 26 ADGP posts at the Centre, 9 posts are vacant and 7 posts are likely to fall vacant due to superannuation and promotion by 31 March, 2010. Against 16 vacancies, only one officer is available on the offer list (out of the list of 32 ADGP-empanelled officers). In order to increase the size of the pool of available officers, 61 IPS officers of the 1977 and earlier batches were empanelled on November 21, 2009 to hold ADGP-level posts.
Civil Defence A Rs. 100 crore scheme for revamping the Civil Defence set-up in India was approved for the XIth Five Year Plan. The existing Scheme envisages upgradation of training institutes, equipment purchase and a pilot project for involving Civil Defence in Internal Security and law and order management. Of the Rs. 15 crore sanctioned for this year, Rs. 11.87 crore was released on November 15, 2009 to the concerned State Governments.
6,271 new Civil Defence volunteers were enrolled and 4,220 inactive and unfit volunteers weeded out.
Other initiatives The death sentence of the condemned prisoner R. Govindasamy was commuted to life imprisonment under Article 72 of the Constitution of India. He will remain in prison for the remainder of his natural life. The decision was conveyed to the Government of Tamil Nadu on November 23, 2009.
The scheme for strengthening of Special Branches of the State Police has been finalized.
The Recruitment Rules for Group 'C' posts in the NIA have been framed and notified.
Following the resignation of the incumbent, Mr. Justice HS Brar retired Judge of the Punjab & Haryana High Court, was appointed as the Chief Commissioner, Gurdwara Elections.
The Governing Council of the National Foundation for Communal Harmony (NFCH) was reconstituted.
New Governors, nominees to Rajya Sabha The following transfer/appointments of Governors were notified. Dr. (Smt.) Kamla, Governor of Tripura was transferred and appointed as Governor of Gujarat for the remainder of her term. Dr. DY Patil was appointed as Governor of Tripura Shri JB Patnaik was appointed as Governor of Assam.
The following nominations to the Rajya Sabha were notified: Dr. Ashok Sekhar Ganguly Shri HK Dua".
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| Prime Minister's Office |
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| The Prime Minister, Dr. Manmohan Singh has addressed the Women's Leadership Summit in New Delhi today. Following is the text of the Prime Minister's speech on the occasion |
 | Ministry of Finance |
| | No change in Government policy regarding multilaterally funded projects in various Sectors or States |
| Attention of the Government has been drawn to the news item appearing in a section of press today stating that 'India succumbs to Chinese Pressure on Arunachal at WB Meet'. |
| | Ministry of Civil Aviation |
| | Air India's all women pilots to fly Mumbai-JFK non-stop on Women's Day |
| To celebrate Women's Day on 8 March 2010, Air India will make history by using only women pilots to fly Ultra Longhaul flight AI-141 from Mumbai to JFK non-stop on, using a B777-200 Long Range aircraft. |
| | Ministry of Environment and Forests |
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| Marine turtles are characterised by large, streamlined shell and non-retractile head and limbs. |
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| The Ministry of Environment and Forests have approved proposal under the Intensification of Forest Management Scheme for 2009-10 submitted by ... |
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| The biodiversity, both floral and faunal, in the country is under threats for various reasons. |
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| There have been instances of wild life crime in the Andaman & Nicobar Islands during the last 3 years. |
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| Details of fund released to National Parks under Centrally Sponsored Scheme of 'Integrated Development of Wildlife Habitats' during 2009-10 |
| Yamuna severally polluted between Nizamuddin Bridge and Etawah |
| As per Central Pollution Control Board, the stretch of the river Yamuna between Nizamuddin Bridge (Delhi) and Etawah (Uttar Pradesh) exceeds the standard in terms of Biochemical Oxygen Demand (BOD) of ... |
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| The Union Government has decided to conduct a vulnerability line mapping along the country's coastline to ensure the safety of those living close to the coast. |
| Long-term conservation of Asiatic Lion in Greater Gir Region |
| The Planning Commission has been requested to provide additional funds under the Centrally Sponsored Scheme of 'Integrated Development of Wildlife Habitats' (IDWH) for conservation of Asiatic Lions. |
| | Ministry of Defence |
| | Inauguration of ICG Complex at Vizhinjam by Hon'ble Raksha Mantri on 06 Mar 2010 |
| At an impressive ceremony on 06 Mar 2010, the new Coast Guard Administrative Complex at Vizhinjam, was inaugurated by Shri AK Antony, Hon'ble Raksha Mantri, |
| | Ministry of Tourism |
| | Kumari Selja laid the foundation for Tourist Information Plaza at Patto in Panaji (Goa) |
| The Union Minister for Tourism and Housing and Urban Poverty Alleviation, Kumari Selja today laid the foundation for Tourist Information Plaza at Patto in Panaji (Goa). |
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| The Union Tourism and Housing and Urban Poverty Alleviation Minister Kumari Selja has urged seven western Indian States/Union Territories (UTs) to take all necessary steps for ... |
| | Ministry of Women and Child Development |
| | Women are the focus of efforts for inclusive growth: Prime Minister |
| The Prime Minister Dr Manmohan Singh, has said that women have been a special focus of the government's efforts regarding making development inclusive. |
| The Budget and the Indian Economy Ashok Handoo** | |
| 17:4 IST | |
| The latest budgetary exercise has clearly been an attempt to reconcile two equally pressing considerations—economic growth and financial consolidation. While growth is important to have a larger cake to share, financial consolidation is needed to ensure that the gains do not dissipate as a consequence of inflation. Fortunately, what the country is witnessing today is food inflation primarily due to supply constraints on account of the worst monsoon in 30 years. But as the Economic Survey report warns there is every danger of this inflation percolating to other sectors, if timely steps are not taken. It was in this backdrop that the Finance Minister Mr. Pranab Mukherjee in his budget proposals, took the first step towards fiscal consolidation by making a modest beginning in partially withdrawing the concessions given in the stimulus package last year. The economy then was in a serious downturn and it needed government help to withstand global pressures. The picture today is different. All indicators point to a reviving economy, much before other world economies. The cuts in excise duties on all non- petroleum products have thus been restored by 2 percent to 10 percent, still less than 12 percent earlier. The service tax has not been raised but broad based. The action is in line with not only the recommendations of the Economic Survey report but also the Prime Minister's Economic Advisory Council suggesting a partial roll back of the stimulus package. In his post-budget interviews Mr. Mukherjee has made it clear that while a modest beginning has been made he would consider a full withdrawal of the stimulus package only when the economy attains a growth of 8.5 to 9 percent. According to his own estimates, corroborated by other surveys, the economy would grow by around 7.2 percent in the current financial year which would go up to 8 to 8.5 percent in 2010-11 and reach 9 percent and more in the subsequent year. The budget also envisages a fiscal deficit of 6.8 percent for the current year which would fall to 5.5 percent in the next fiscal and 4.9 percent in 2011-12. This would in turn mean lesser borrowings by the government, making more funds available for investment by the private sector. On the financial side the government will collect a revenue of Rs.46, 500 crore through taxes but would suffer a revenue loss of Rs.26, 000 crore by giving concessions in direct taxes. This will mean a net revenue of Rs. 20,500 crore. A clear disinvestment plan has also been put in place. The government is confident that it will be able to raise Rs. 25,000 crore though disinvestment in the current fiscal ending 31 March 2010. It also envisages to collect Rs.40,000 crore through disinvestment in the next fiscal. The 3-G auction is estimated to bring in about another Rs.35,000 crore. All these measures aim at checking the inflationary pressures on the fiscal side. But there is a supply side as well. The budget recognizes the fact that it is really the supply side that has to be tackled more effectively to control inflation. That explains a steep increase in the allocations for the farm sector. A 9 percent growth rate will be possible only if we achieve at least 4 percent growth in agriculture which grew only at 1.6 percent in 2008-09 and actually a shrinkage of 0.2 percent in the current year. A new strategy for farm growth has thus been put in place in tune with the needs of the economy. While allocating Rs. 400 crore for extending the green revolution to the eastern region comprising, Bihar, Chhatisgarh, Jharkhand , Eastern UP, West Bengal and Orissa, Rs. 200 crores have been provided for conservation farming to increase productivity and reduce losses. The target for farm credit too has been raised from 3,25,000 crore to 3,75,000 crore. Loans to farmers will be provided at a concessional rate of 5 percent. To give a push to the food processing sector, five more mega food parks will come up in addition to the 10 already being set up. The relief given to the middle class by raising income slabs for personal tax and allowing a further savings of Rs.20,000 in infrastructure bonds for tax relief, will on the one hand leave more money will the people to spend and thus raise demand and on the other hand provide for better savings, given the propensities of an average Indian. This will lead to creation of additional funds for investment. The increase in excise duty on petroleum prices is no doubt going to increase inflationary pressures but as the Minister put it the impact will only be marginal which will be absorbed in due course of time. Massive allocation for the social sector will help the backward classes and boost incomes in the rural sector. It has been increased to 37 percent of the total plan outlay in 2010-11. Mahatma Gandhi National Rural Employment Guarantee Scheme has been given Rs. 40,100 crore, a thousand crore more than the previous year. Rural infrastructure programmes under Bharat Nirman got Rs.40,000 crore. Similarly allocations for other sectors like education, health etc. have also been increased substantially. By accepting all the major recommendations of the 13th Finance Commission, the Finance Minister has taken care of the states finances as well. The Commission has come up with a bonanza for the State Governments. Their share in central taxes will go up by 2.5 percent which means an additional amount of Rs.71, 000 crore out of the divisible pool next year. There will be a substantial increase in the states shared taxes and grants as well. The Finance Minister has also announced his plans to bring in both the Direct Taxes Code (DTC) and the Goods and Services Tax (GST) in April 2011 which will further streamline the financial structure in the country. So the mood is upbeat and India is well on the path of economic recovery. By being the first country to kick off a calibrated fiscal consolidation it has demonstrated that the fundamentals of its economy are sound. As the Economic Survey points out the reforms would make India the 4th fastest growing economy in the next 4 years. What has helped the economy to look up is the brilliant performance of the industrial sector which has recorded consistent growth this year. Though the negative growth in the export sector has been arrested, it is still not out of the red. Calibrated policy measures are thus in tune with the needs of the economy. The focus now has to be on dealing with the double digit food inflation, which is a source of concern for the time being. Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB RTS/VN SS-49/SF-49/02.03.2010 **Freelance Writer |
| Budget sets new benchmarks for growth, equity and reforms S. Sethuraman** | |
| 20:6 IST | |
| The Union Budget for 2010-11 marks a significant stage in Indian economy's growth rebound, enabling Government to make a calibrated exit from stimulus measures taken earlier to weather the global crisis, advance further the inclusive development processes, and, at the same time, resume the path of time-bound fiscal consolidation. The pragmatism underlying the budget would enhance the rating India enjoys globally as a fast-growing economy and an attractive destination for investors. Also, the budget makes new reform openings. The Rs. 11,08,749-crore Budget, presented to Parliament by Finance Minister Pranab Mukherjee on February 26, envisages GDP growth at 8.5 per cent in fiscal 2011, given the renewed momentum in the manufacturing sector and prospects of significant private investment to become a principal driver of growth. Economy had recovered to 7.2 per cent in current year. Higher levels of public expenditures will provide strong support to infrastructure and social development, accounting for 46 and 37 per cent respectively of the total plan outlay for 2010-11. Priority is accorded to Agriculture. Rural employment guarantee and other flagship programmes have been well-funded.
Fiscal Consolidation The Budget aggregates have been worked out keeping view the recommendations of the 13th Finance Commission under which States would get a higher 32 per cent share of Centre's tax revenues for the next five years (2010-15). It incorporates the Commission's road-map for fiscal consolidation at the Centre and States under which fiscal deficit would get gradually reduced to 3 per cent of GDP and the combined debt of Centre and States would also be capped at 68 per cent of GDP by 2014-15. It will be the first time for Government to target an explicit reduction in its domestic debt-GDP ratio.
The Centre has to bear a substantial additional burden in the higher annual transfers to States both under tax proceeds and grants-in-aid on the basis of the distribution formula worked out for individual states by the Commission. The States together would get an additional Rs.40,000 crores from the central pool of taxes in 2010-11 over the revised estimates of the current year. The Budget in a way sets the pace for two landmark tax reforms to be ushered in on April 1, 2011 - Direct Tax Code for personal and corporate tax-payers and the Goods and Services Act (GST), which is designed to knit the country as a common market.
Resource Mobilisation In the Budget, the Finance Minister has broadened the income tax slabs to put more disposable incomes in the hands of tax-payers which could be of use to stimulate demand for goods and services. Corporate tax surcharge has been reduced from 10 to 7.5 per cent and other incentives have been provided for investments, such as in infrastructure bonds. A revenue loss of an estimated Rs.26,000 crores would be more than made up by changes in the Union Excise and Customs duties to yield Rs.43,500 crores and Service tax changes to gain Rs.3000 crores. Net gain would be Rs.20,500 crores. With ongoing economic recovery tax revenues would become buoyant. The new changes on the indirect taxes keep the peak average import tariff at 10 per cent while the revised excise duty and services tax have also been held at 10 per cent as a step toward GST.
Disinvestment and Subsidy Reductions, along with expenditure reform, have now become the pathways to achieve fiscal consolidation and channel increasingly larger resources for Inclusive Development which the Finance Minister said is an "article of faith" for Government. It will also help to provide more for asset-creating capital expenditure as currently, some part of domestic borrowings are used to finance non-plan (unproductive) expenditure. Government gave a push to the policy of disinvestment of limited stake in public undertakings without giving up majority control to realise over Rs.25,000 crores in the current year. The budget assumes Rs.40,000 crores under this head in 2010-11 which is also expected to see Rs.35,000 crore realization under the 3G Spectrum auction. Other new duty adjustments and natural growth as economy picks up would take Centre's total tax and non-tax revenue to Rs.682212 crore.
Plan and Non-Plan expenditures are estimated at Rs. 3,73,092 crore and Rs. 7,35,657 crore, an increase of 15 and 6 per cent respectively in 2010-11 to take the total expenditure at Rs.11,08,749 crore. Besides revenues and non-debt receipts, the Centre would fill the budgetary gap with capital receipts including market borrowings. Fiscal deficit at Rs.381408 crores would be 5.5 per cent of GDP in the new fiscal year as against 6.7 per cent 2009-10.
Signalling the start of fiscal consolidation, the Finance Minister has also set the fiscal deficit targets at 4.8 and 4.1 per cent of GDP for 2011-12 and 2012-13. Though the revenue deficit is relatively high at 4 per cent of GDP as budgeted at present, the Finance Minister hopes to bring it down to 3.4 and 2.7 per cent over the following two years toward eventual phase out of revenue deficit by 2014-15. Actual net market borrowing of the Government in 2010-11 would also be lower at Rs.3,45,010 crore, to leave enough space for private sector to meet its credit needs.
Expenditure Reform A major thrust in reducing non-plan expenditure is to begin with a cut in subsidies, especially petroleum products and fertilizers, as reflected in the budget estimates. A start has been given on fertilizers with nutrient-based subsidy with the assurance that there would be no price increases in the ensuing kharif season. More importantly, the system of issuing bonds to oil and fertilizer companies, as off-budget liability, is being discontinued so that any subsidy cash outgo would be brought into fiscal accounting. Government expects to take a decision on a market-related system of pricing of petroleum products, recommended by the 'Kirit Parikh Committee,' in due course".
Meanwhile, in indirect tax changes, the budget restores the import duty on petroleum crude and refined products, which had been reduced when global oil prices were too high, now that oil prices are relatively lower. An excise levy of Re. one per litre on petrol and diesel is also proposed. The changes in duties on POL have encountered resistance from opposition parties, in the context of inflation. On all other non-petroleum goods, the excise duty has been uniformly kept at 10 per cent, up from 8 per cent under the stimulus package.
There are reforms proposed as part of the budget to ensure that budgetary provisions result in intended outcomes and there would be renewed focus on mechanisms for effective delivery of public services.
Growth Consolidation Double digit food price inflation is a matter of "major concern", the Finance Minister said and hoped recent consultations with Chief Ministers would result in bringing down inflation "in the next few months" and arrest the transmission of high food and fuel prices into the general price level. Agriculture has thus come to the forefront again and the Budget makes provisions for extending the green revolution to the eastern region and for encouraging production of pulses and oilseeds. Farm credit would rise to Rs,375,000 crores and interest subvention has been raised to two per cent for timely repayment of short term crop loans.
Besides fiscal consolidation, the Budget seeks to improve investment environment such as simplifying the FDI regime, as part of reform measures to consolidate growth of the economy. A Financial Stability and Development Council will be set up at the apex level for macro-prudential supervision in the financial sector including the functioning of large financial conglomerates. Public Sector Bank capital base would be strengthened with a provision of Rs.16,500 crores. To expand access to the banking system, RBI is considering grant of additional licences to private sector players. Government is also providing further capital to Regional Rural Banks so that they have adequate base for increased lending to the rural economy.
The Budget makes substantial provisions for expanding infrastructure - roads, power, railways - and social sectors like education and health, and rural development (employment guarantee and Bharat Nirman programmes), A National Social Security Fund for unorganised sector workers and a National Clean Energy Development Fund for research and innovative projects in clean energy technologies also form part of the budget proposals. (PIB Features)
Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of PIB
RTS/VN SS-50/SF-50/03.03.2010 **Freelance Writer |
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Palash Biswas
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