The Hindu : National : Lok Sabha passes supplementary demands for grants

Online edition of India's National Newspaper
Wednesday, Dec 22, 2004

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National

Lok Sabha passes supplementary demands for grants

By Our Special Correspondent

NEW DELHI. DEC. 21. The Lok Sabha today passed the Supplementary Demands for Grants for an additional expenditure of Rs. 38,622 crores for the current financial year. The appropriation bills were passed by a voice vote after the Finance Minister, P. Chidambaram, said the funds were required to implement schemes such as mid-day meal, food-for-work, besides for health and agriculture sectors.

Replying to a two-day debate, Mr. Chidambaram said industrial growth had been put at 8.4 per cent against 6.2 last year; the growth of manufacturing sector 8.8 per cent compared to 6.8 per cent last year and power sector 7.1 per cent against 2.9 last year. The capital goods industry had grown at 15.1 per cent this year compared to 9.2 per cent last year and in the mining sector it was five per cent now compared to 3.9 per cent earlier.

He said economic activity had grown at a rapid pace, which in turn was reflected in the " the growing confidence" of investors in the economy. He pointed to the increase inthe foreign exchange reserves from $118 billion in the last fiscal to $129.7 billion and FDI inflow, between April and October this year, had risen to 3.46 billion from 1.45 billion during the corresponding period last fiscal. "The economy is doing well thanks to the sweat and toil of the farmers, the workers and the service providers," he said.Participating in thedebate Milind Deora (Congress) sought more funds for Mumbai. "Mumbai is the largest contributor to the national exchequer. If the city has to grow it needs to have a massive urban renewal programme," he said.

Mr. Deora referred to the Prime Minister's Grant Project (PMGP) started by the former Prime Minister, Rajiv Gandhi, through which the city received Rs. 100 crores. He urged the Government to focus on improving housing and transportation.

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