Finance Bill Passed By Lok Sabha

Finance minister P Chidamba-rams dream budget is set to become a reality following the approval of the Finance Bill for 1997 by the Lok Sabha yesterday.

The House adopted the bill by voice vote after rejecting the Bharatiya Janata Party sponsored amendments. The bill will now go before the Rajya Sabha, after which it is required to be submitted for the Presidents assent by May 14.

Earlier, the finance minister put up a spirited defence of his proposals. Defending the controversial voluntary disclosure scheme, Chidambaram said: We are giving people a last chance. Believe me, behind the velvet glove is a firm fist. I intend to impose not just penalties on all those who violate the law, but will also not hesitate to initiate prosecution, he said.

 

The minister said none of the political parties had opposed the scheme during the post-budget discussions. In fact, I have gone beyond the proposal put up by the Left and have imposed a 30 per cent tax on all such disclosures, he added.

Chidambaram blamed the high tax rates in the past for black money generation. Lowering the income tax rates would not only ensure better compliance but also induce higher domestic savings and capital formation, he said. I believe Indias tax rates should be competitive at Asian levels, he added.

CPI (M) member Rup Chand Pal said the Left had serious reservations about various provisions in the budget. He added that the bill was anti-people and went against the policies of self-reliance, but the Left was compelled to support the government to keep communal and divisive forces at bay.

Responding to queries by Samata Party member of Parliament George Fernandes, the finance minister maintained that the government was not interfering with the CBIs investigations in the Indian Bank scam. Chidambaram said 19 cases have been registered by the CBI in connection with the scam so far, with a fresh sanction being accorded on Thursday.

The court has accepted my submission to put up a factual record leading to the appointment of the banks chairman. The cabinet secretary is preparing this report.

As the most repeated phrase of last year, all I can say is that the law will take its own course, he quipped.