No Pressure From Wb On Fiscal Bill, Says Sinha

There is legitimate concern about whether fiscal policy will have to based on the court directives once the fiscal responsibility bill is passed, said finance minister Yashwant Sinha. He also discounted the suggestions that the government is under pressure from World Bank to pass the bill.

Sinha informed the Lok Sabha during Question Hour today that the standing committee on finance, which is examining the bill, will hopefully take care of the problem.

He was replying to a question by Kharabela Swain (BJP). Swain had asked whether the passage of the fiscal responsibility and budget management bill will allow anyone to approach a court if the government fails to meet any of the budget targets.

The finance minister said that the finance ministry officials have explained the true situation to the standing committee members. Sinha also said that he wanted to correct an impression in media that he had asked Shivraj Patil , standing committee chairman, to expedite the process. Patil backed him by saying that there has been no such instruction from the minister.

The minister said it is in the country's interest to reduce the fiscal deficit and borrow less. The total internal debt of the Centre is Rs 804,528 crore, as per the revised estimates for 2000-01.

Regarding the disinvestment proceeds, the minister said it will be first used for retiring public debt and then for public sector restructuring.