The Hindu : National : Social security system under pressure: Jaswant

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Wednesday, Apr 07, 2004

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Social security system under pressure: Jaswant

By Our Staff Correspondent

MANGALORE, APRIL 6. The low interest regime has put pressure on the social security system. But the low interest regime also has had a positive effect on housing, lending, and agricultural sectors, the Union Finance Minister, Jaswant Singh, has said.

He told presspersons here today that there had to be parity among the social security system, spending, savings, and lending, and the low interest rate was one of the tools to achieve it. The low interest rate helped trade and commerce achieve higher growth. But, the consequent low returns on investments adversely affected retired persons. The Government was continuously finding new methods and means to tackle this problem, he said.

The growth in the agriculture sector spurred the Centre to introduce the "Antyodaya" programme of providing 30 kg of free grain to over 1.5 crore people living below the poverty line.

About the plight of non-banking financial companies, Mr. Singh said the Securitisation Act would be extended to the NBFCs in the long term, but first the Government had to address the problems of investors and depositors.

About the growth pattern of Karnataka, Mr. Singh said "change was in the air" and people were keen to get empowered economically, and the ideas of the State Government were the ideas of a party of the yesteryear.

He said the nation was benefiting from the National Democratic Alliance's design of growth and development. He saw no reason why Karnataka should be left out. India aspired to become an economic superpower by 2020 but by the way the country was surging ahead, this could be achieved much earlier, he said.

Relations with U.S.

Interacting with the business community and intelligentsia, Mr. Singh said that India had shown the wherewithal to overcome the economic and technological sanctions imposed on it by the United States in the aftermath of the Pokharan tests.

He was replying to Prabhakar Joshi, former Principal of Besant Women's College, Mangalore.

Dr. Joshi said the nation somehow seemed eager to please the United States and did not show the character to assert itself adequately. On the other hand, Pakistan was able to hold its ground against the U.S. pressure.

Mr. Singh, referring to the comments made by the then Secretary of State to the U.S. Government, Madeline Albright, after the Pokharan blasts that India had dug a hole and buried itself in it, said he had then told Ms. Albright that she had underestimated the strength of Indian determination.

Mr. Singh said the book to be released by the President of The Brookings Institute and then Deputy Secretary of State of the United States, Strobe Talbott, had given full marks to Indian foreign policy.

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