The Hindu : National : Finance Minister lauds States

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Wednesday, Feb 08, 2006

National

National

Finance Minister lauds States

Special Correspondent

"For getting more focussed on Plan expenditure"

NEW DELHI: Finance Minister P. Chidambaram on Monday hailed the State Governments for getting more focussed on Plan expenditure.

Addressing members of the Parliamentary Consultative Committee attached to his Ministry, Mr. Chidambaram said the Plan expenditure up to December 2005 was 66 per cent of the budget estimates (BE) as compared to 56 per cent last year. The five-year moving average was 59 per cent. "It is a good sign that the Union and the State Governments are more focussed on Plan expenditure."

He informed the committee members that 52 lakh PAN cards had been issued this yearand of these, 99 per cent were issued within 10 days.

While a special purpose vehicle had been incorporated for financing infrastructure, no firm proposals had been received from the States.

On the economic parameters, Mr. Chidambaram said: "Our revenue and fiscal deficits and inflation have come down, which is very good for boosting investment and growth."

Plight of farmers

Chairing the meeting, he sought suggestions from the members for the 2006-07 budget. Most members emphasised on the need for greater attention to rural areas, especially for improving the plight of the farmers. They suggested an increase in the investment in agriculture along with a hike in subsidy and lowering of the interest rates

Some members suggested encouragement to private investment in infrastructure, a boost to the food-processing sector, and strengthening of the water harvesting and water linking schemes.

`Keeping close watch'

Mr. Chidambaram reiterated that the Securities and Exchange Board of India (SEBI) was keeping a close watch on the stock market in the wake of the ongoing boom.

Talking to reporters after meeting SEBI Chairman M. Damodaran, he said the fact that the Sensex had crossed the 10,000 mark reflected business confidence and the strong fundamentals of the economy.

"Surveillance is part of SEBI, and it was precisely why we had a meeting," he said.

He advised small investors to take "informed decisions" or invest in mutual funds. "Do your research and invest cautiously. If you can't, invest through mutual funds or other intermediaries."

SEBI always had the market under surveillance, Mr. Damodaran said.

The market regulator was no less vigilant when the Sensex was at 9,900 and no more when it was at 10,100.

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