The Hindu : National : Implementation of programmes is my worry: Chidambaram

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Friday, Jul 09, 2004

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Implementation of programmes is my worry: Chidambaram

By Our Special Correspondent

NEW DELHI, JULY 8. Shortly after presenting the General Budget, the Finance Minister, P. Chidambaram, said that his one worry was the implementation of the programmes and policies outlined in it.

"If there is one pressure point, it is implementation. We have provided the direction and the money, for the Sarva Shiksha Abhiyan (universal education), for the food-for-Work programme and many others. Now, much depends on implementation,'' Mr. Chidambaram said.

The budget was not inflationary since the indirect tax proposals were revenue neutral. "I don't see any impact on prices," he said.

On growth, Mr. Chidambaram was optimistic that the targeted 7-8 per cent growth could be achieved. "If agriculture picks up, if industry and services grow, I think we can look to high growth. Industry should pick up since I have not done anything anti-industry. Rather, there are measures to encourage industrial growth. It is true that they expected more, but there is nothing anti-industry in the budget."

He was candid in confessing that taxpayers had expected a lot from his budget but admitted that he could not sacrifice Government revenues in a year when new responsibilities had been assumed. "I have said I will take a look at tax rates in the next budget if compliance improves," he added.

Asked about the high revenue projections in the budget, Mr. Chidambaram said the additional impact of direct tax changes was Rs. 2,000 crores. The higher revenue expectations were on account of normal historic growth in revenues plus the plans to collect a substantial sum of arrears which were locked up. Finance Ministry officials later explained that while some arrears were held up because of court orders, there were many other cases where there were no such orders. Such cases accounted for about Rs. 15,000 crores in direct taxes and Rs. 3,000 crores in indirect taxes.

A strategy was being worked out to recover the arrears and around Rs. 8,500 crores could be the estimated collection.

On the Employees Provident Fund, it was pointed out that there was no change in the 8 per cent interest paid under the Special Deposit Scheme. As for any change in EPF returns, the officials said it was for the trustees to take a decision.

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