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| Shourie calls for pointed stimulus packages |
| BS Reporter / Kolkata Mar 31, 2009, 21:02 IST |
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Stimulus packages should be sector, location and firm-specific, suggested Arun Shourie, former Union minister for disinvestment.
Speaking at an interactive session organised by the Indian Chamber of Commerce (ICC), Shourie claimed that the government should encourage more sector and firm-specific stimulus packages that would percolate down to the needs of various industries.
Commenting on the infrastructure sector, Shourie suggested that the government should provide greater reward to states and firms that execute infrastructure projects faster, thus providing a boost to that particular industry.
"Look at the state of various infrastructure projects in the nation, whereby only some work is being done in the airlines sector. The national highways authority of India (NHAI) awarding of contracts has fallen from 70 to 17 per cent, while in the case of Mumbai metro, bids were called, deadline was extended but there were no bidders", said Shourie.
Shourie also claimed that due to the present government's incompetence and inability to handle issues, there would be a fiscal deficit of about 14 per cent.
"With the financial year (FY) coming to a close, the government borrowed almost three times to what was in the budget. All of this would thereby lead to an increased deficit of about 13-14 per cent. It is due to the gross mismanagement, irresponsiblity and falsification of accounts by the present government that have resulted in this situation", said Shourie.
The main economic agenda of any political party now should be to restore fiscal disclipline in the nation, claimed Shourie.
Energetic policies taken by a decisive government that looks at industry like 'partners', is what the nation would need, further added Shourie.
Shourie also added that the "swelling nature" of the off-budget expenditure highlighted the weakness of the present government and hence items like that of oil and fertilizer subsidies should be included in the budget.
He felt that the government should not go for pricing oil, gas and fertilizer and leave it for the market to decide.
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