Jaipal Reddy disappointed over lack of funds for new projects

Union Minister S Jaipal Reddy today expressed disappointment over Finance Minister Pranab Mukherjee putting brakes on funding new city projects but said he understood the fiscal compulsions.

"I (the Urban Development Ministry) need more money. Everybody agrees. All the ministerial colleagues agree... They need money for their respective towns", Reddy said at the Business Standard Infrastructure meet 2010 here.

"Of course, the Finance Minister is not able to spare more money. I would say our Finance Minister is in bad fiscal mode. He (Mukherjee) says no more projects, no more missions. Not at the moment. Let me (Mukherjee) stabilise my (the country's fisal) position", he said.

Reddy later told reporters in response to questions that he wants the allocation for urban infrastructure projects to be enhanced.
    
"I want new projects in all big cities to be taken up. I would want more money made available for small and medium towns. So, naturally, if I were the Finance Minister, I would not agree (to increase the funds now given the fiscal position). He is trying to be fiscally prudent", he said.