The Hindu : Front Page : Scope for consolidating growth: Chidambaram

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Tuesday, May 25, 2004

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Scope for consolidating growth: Chidambaram

By Alok Mukherjee

TAKING CHARGE: Finance Minister P. Chidambaram, speaking to the media on Monday in New Delhi, promises continuity as well as change. — Photo: V. Sudershan

NEW DELHI, MAY 24. The Union Finance Minister, P. Chidambaram, has indicated that the Government might announce some policy initiatives even before the general budget, expected some time in July.

Talking to the media after taking charge, Mr. Chidambaram said the programme as of now was to have a short session beginning on June 2 to be followed by a short recess. "The budget session of Parliament will begin after that and a full budget would be presented. It is a matter of technicality whether the Finance Bill is passed before July 31 or not and that would be worked out by the Ministry of Parliamentary Affairs. But a full budget would be presented," he said.

Asked whether the Government would go in for some policy announcements before the budget, he said: "Why not? Every government makes announcements before the budget."

Mr. Chidambaram met the media about an hour and a half after taking charge. By then, he had had briefings from the Secretaries in the Finance Ministry and the Chief Economic Adviser, Ashok Lahiri. "I won't go into specifics just now. That would have to wait for my meetings with you some time later," he said while declining to take questions on whether the Government would encourage savings by altering the deposit rates.

Reading out a written statement, Mr. Chidambaram said: "I have reason to believe that the economy is in a resilient mood in terms of growth, inflation and the balance of payments situation. There is great scope to consolidate this growth momentum with special emphasis on agriculture, manufacturing and employment generation which we have promised to the people."

Saying that the whole country was in an expectant mood after Manmohan Singh became the Prime Minister, he said the policies adopted since 1991 had brought considerable strength to the economy. "What the new government would do is to factor in the experience of the last 13 years." About continuity and change that have been promised by the new Government, he said: "Continuity is pretty clear — we are going back to the days of the original reformer, Dr. Manmohan Singh, and there is a strong vote for continuity. Change is the political reality. We were out of office and we have come back with new experience which we will factor in."

The Minister reiterated the commitment of the United Progressive Alliance to step up investment, both public and private. "My job is to promote investment which is the key to growth, jobs and income. Some areas require special attention and we will devote it." Mr. Chidambaram discounted the possibility that massive public investment would interfere with the Government's commitment to fiscal consolidation as laid down in the Fiscal Responsibility and Budget Management Act. "The two are not irreconcilable. We will find the money for investment and at the same time we are bound by Parliament. With some effort, both are possible."

Mr. Chidambaram termed the "India Shining" campaign of the National Democratic Alliance Government a "campaign which mocked the poor and that is why they voted that Government out." The UPA, on the other hand, wanted India to shine. "That is an aspirational statement. But India should shine for all Indians and we will achieve this with good economics, good and sound politics and hard work. I assure you on behalf of the UPA that we will provide all these."

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