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| Govt seeks broad consensus to pass reforms bill: FM |
| Press Trust of India / New Delhi Oct 30, 2009, 12:30 IST |
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The government today sought broad political consensus to clear the crucial legislations, including the labour and the insurance bills, to push forward the reforms for returning to 9 per cent economic growth.
"We don't have the required majority in the two Houses (of Parliament) to clear the bills ... A broad political consensus is needed," Finance Minister Pranab Mukherjee said addressing the Hindustan Times Leadership Summit here today.
He said fiscal deficit must be contained and brought back to 5.5 per cent by 2011-12 from 6.8 per cent now.
Stressing on fiscal consolidation, he said the target must be to "bring back fiscal deficit within prudent limits." Mukherjee said he was targeting 9 per cent economic growth in next two years from 6.5 per cent in the current year.
"We must grow by 9 per cent in two years ... I am optimistic," he said.
Agriculture growth this year would be negative at minus two per cent as a result of adverse impact of drought particularly on kharif crop which would be down 15-16 million tonnes.
Mukherjee said consensus on reforms have to be built within the ruling coalition as well as with opposition. "We did not have experience to ruling a coalition before 2004," he said.
"Exactly I cannot say (by when the pending bills will be passed) but I will try to get done as fast as fast," he said.
The Finance Minister said faced with global economic slowdown, the government thought resources need to be injected to generate demand particularly in rural sectors.
Development expenditure was stepped up from Rs 2,85,000 crore to Rs 3,25,000 crore. Higher allocation were made in certain important social sectors like employment guarantee scheme for the jobless and for eduction and health.
"Growth must be inclusive and for that we are going to have institutional arrangements sometime backed by legal rights and entitlements and sometime by normal executive order," he said.
Asked about CBI probe against the Telecom Ministry into irregularities in spectrum allocation, Mukherjee said "allegations of corruption does not mean this is a proof of corruption."
He, however, did not give a direct reply to the question of giving Telecom Minister A Raja a clean chit on the issue.CBI will act directly under CVC, he said.
"I do not say corruption is not there or action should not be taken," he said.
The Finance Minister said that in stead of having a blanket exit strategy all over the world, let individual countries make an assessment of the situation and decide on the issue.
Mukherjee, who will be attending the G-20 meeting in Scotland on November 7 where an assessment of the stimulus packages would be done, said he would "articulate" the exit strategy for India at the meeting.
He said austerity is needed and is not tokenism. Regrading the Direct Tax Code, he said this is a proposal for discussion. It is not a decision. There are issues like capital gains tax, MAT....There is enough time to debate discuss and get into the details.
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