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Further Discussion On Finance (No.2) Bill,1998 Moved By Shri Yashwant Sinha On ... on 16 July, 1998

Title: Further discussion on Finance (No.2) Bill,1998 moved by Shri Yashwant Sinha on 15th July,1998.

15.20 hrs. MR. CHAIRMAN (SHRI KHAGAPATI PRADHANI): Now, the House will take up further consideration of the following motion moved by Shri Yashwant Sinha on the 15th July, 1998, that the Bill to give effect to the financial proposals of the Central Government for the financial year 1998-99 be taken into consideration. The time allotted for this discussion is nine hours. Out of that, two hours and fifty-one minutes have already been taken and the balance time left is four hours and nine minutes.

Prof. Prem Singh Chandumajra was on his legs. He will continue his speech.

प्रो. प्रेम सिंह चन्दूमाजरा (पटियाला) : सभापति महोदय, मैं कह रहा था कि सैंटर-स्टेट रिलेशन रिव्यू करने के लिए लोंगोवाल-राजीव ऐकॉर्ड में सरकारिया कमीशन के तहत आनंदपुर साहब के रैजोलूशन में माना गया था कि स्टेट को ज्यादा पावर दी जाए। उसे लागू नहीं किया गया। फिर यूनाइटेड फ्रंट की सरकारें आईं, उन्होंने भी माना कि रिव्यू होना चाहिए और देश में संघीय ढांचा बनना चाहिए। वह भी लागू नहीं हुआ। मुझे इस बात की खुशी है कि आज हमारी सरकार ने राष्ट्रीय एजैंडा में यह बात सबसे पहले लिखी है कि यदि देश के विधान को रीराइट भी करना पड़े तो सैंटर-स्टेट रिलेशन्स रिव्यू होने चाहिए कयोंकि पिछले समय में जो फैसले होते रहे, वे पोलीटिकल फैसले होते रहे, स्टेटस को उनकी जरूरत के आधार पर नहीं दिया गया, राजनीतिक कम्पलशन के तहत दिया गया। नतीजा यह हुआ कि स्टेटस अपनी योजनाएं नहीं बना सके। जैसे यदि एक परिवार के कमाऊ पुत्र को अच्छी खुराक न दी जाए तो वह परिवार खत्म हो जाता है। ऐसे ही जो स्टेट टैकस कलैकशन करती थी, उनको उनका हिस्सा नहीं दिया जाता था और स्टेट को आगे बढ़ने का समय नहीं दिया जाता था। इसलिए देश खुशहाली की ओर नहीं बढ़ पाया, देश कमजोर होता गया। मेरा वित्त मंत्री जी से निवेदन है कि जिस रेशियो में टैकस कलैकशन होता है, उसमें से ५० प्रतिशत स्टेटस को दिया जाए तो स्टेटस आगे बढ़ सकती हैं। ऐसे ही उनको अपनी योजनाओं में स्वतंत्रता होनी चाहिए, वे रिजर्व बैंक से लोन ले सकें, बाहर के देशों से लोन ले सकें और अपनी जरूरत के अनुसार योजनाएं बना सकेंगे तो देश आगे बढ़ सकता है। मैं वित्त मंत्री जी को कहना चाहूंगा कि राष्ट्रीय एजैंडा में घोषणा की गई है कि राष्ट्रीय जल नीति बनाई जाएगी। इसकी भी बहुत जरूरत थी। माननीय प्रधानमंत्री जी ने राष्ट्रपति के अभिभाषण में माना था कि हमारा ७५ प्रतिशत रेन वाटर मिसयूटीलाइज हो जाता है और वह डैमेज भी करता है। आज पंजाब, हरियाणा में जो बाढ़ आई हुई है उससे करोड़ों रुपये की फसलें तबाह हो गई हैं। यदि हिमाचल में कहीं डैम बनाए जाते तो उस पानी को रोका जा सकता था और वह सिंचाई के लिए काम आ सकता था। हमारे देश की २१ प्रतिशत कल्टीवेटेड लैंड ऐसी है जिसमें ऐकसस वाटर है और १५ प्रतिशत कल्टीवेटेड लैंड ड़ाउट में है, ६२ प्रतिशत नार्मल है। इसलिए सूखे और बाढ़ से बचाने के लिए यदि राष्ट्रीय जल नीति में इस बात को प्रॉयरिटी दी जाए तो यह हो सकता है। मैं चाहूंगा कि देश को फलड प्रूफ बनाने के लिए राष्ट्रीय जल नीति के तहत ऐसे प्रोजैकटस तैयार किए जाएं जिससे बाढ़ के पानी की तबाही से बचा जा सके। ऐसे ही पावर सैकटर को संभालने की जरूरत है। हमारे ट्रासंमिशन लॉसेस, डिस्ट्रीब्यूशन लॉसेस जो संसार में सबसे ज्यादा हैं, उसे चैक करने की जरूरत है। ऐसे ही पीक सीजन में कई प्रदेश ऐसे हैं जहां उनको साल में ३-४ महीने पावर की जरूरत होती है और आठ महीने कम जरूरत होती है। कुछ स्टेटस ऐसी हैं, जहां बिजली सरप्लस होती है तो सरप्लस स्टेट से डैफीसिट स्टेट में ट्रासमीशन के कोई उपाय होने चाहिए। जैसे पंजाब में तीन-चार महीने के लिए बिजली की जरूरत होती है, आठ महीने बिजली फालतू होती है। जिस स्टेट में सरप्लस बिजली है, उससे डैफीसिट स्टेट के लिए ट्रांसमीशन का कोई उपाय करना चाहिए। इसी तरह अनिएम्पलायमेंट की प्राब्लम भी गम्भीर है। हर मां-बाप को अपने पुत्रों की चिन्ता है कि उनको कैसे एम्पलायमेंट दी जाये। इसके लिए एग्रो बेस्ड एक बात बहुत जरूरी है, मैं समझता हूं कि सरकार के खर्चे कम करने चाहिए। सरकार के खर्चे की पहले से आदतें पड़ी हुई हैं, ५० वषर्ों से खर्चा बढ़ता जा रहा है, अब इसको चैक करने की जरूरत है। कितनी परेशानी की बात है, सोचने की बात है, ४० परसेंट लोग गरीबी की रेखा के नीचे हैं। यहां ७९ हजार करोड़ रुपया सरकार ने फाइनेंसियल इंस्टीटयूशंस से उधार लिया। अगर सरकार ने इतना पैसा फाइनेंशियल इंस्टीटयूशंस से उधार ले लिया तो पहले तो रेट ऑफ इंटरैस्ट बढ़ेगा, इन्फलेशन बढ़ेगा। फिर जो कृषि का क्षेत्र है, इंडस्ट्री है और प्राइवेट लोग हैं, वे कहां से लोन लेंगे। आज उनको लोन नहीं मिलता, इन्वैस्टमेंट नहीं होता और काम रुक जाता है। इसलिए सरकार को खर्चे कम करने चाहिए। इसी तरह देश का बहुत सारा धन अनप्रोडकिटव पड़ा है। ६४ करोड़ रुपया तो लटिगेशन में टैकसेज़ का, इन्कम टैकस और कस्टम डयूटी का ही पड़ा है, इनकी उगाही नहीं हो रही है, इसको उगाहना चाहिए। ४४ करोड़ रुपया नॉन परफोरमिंग असैटस हैं, जो नेशनल बैंकों के पड़े हैं, अगर इस धनराशि को प्रोडकिटव बनाया जाये तो देश आगे बढ़ सकता है और उससे एम्पलायमेंट भी मिल सकता है। इसी तरह महंगाई को चैक करने की जरूरत है। सात परसेंट इन्फलेशन बढ़ गया, ढाई तीन परसेंट तो पिछले दो तीन महीनों में ही बढ़ गई। आलू १२७ परसेंट बढ़ गया, प्याज बढ़ गई, टमाटर बढ़ गई, दालें ४०-५० रुपये किलो हो गईं। सरकार कहती है कि यह सीजनल इन्क़ीज है। मैं नहीं समझता हूं कि यह सीजनल इन्क़ीज है। इसको चैक करने की जरूरत है। कहीं कोई कमी है, यह बात ध्यान मांगती है। माननीय मंत्री हेगड़े साहब ने कहा कि निर्यात कम हो रहा है, निर्यात इसलिए कम हो रहा है कि उत्पादन कम हो रहा है। उत्पादन इसलिए कम हो रहा है कि डिमांड कम हो रही है। मांग कम हो रही है, अगर मांग कम होगी तो लोगों की परचेजिंग पावर कम हो रही है, यह बड़ी चिन्ता की बात है। कहीं न कहीं हमारी अर्थव्यवस्था में कोई कमी है, सिस्टम में कोई कमी है, उसको चैक करने की जरूरत है, जिसमें हम सब कुछ कर सकें। एक बात मैं और कहना चाहता हूं कि देश का जो बहुत सारा धन है, उसका मिसयूटीलाइजेशन हुआ, वह इसलिए भी हुआ कयोंकि देश में बहुत सारे डिस्प्यूटस हैं। जो   मैं एक बात और कहना चाहता हूं। एक तरफ महंगाई बढ़ रही है और दूसरी तरफ आपने सर्िवस टैकस लगा दिया है, जैसे ट्रांसपोर्टर्स पर लगाया है, जो कि टैकसी वाले हैं, ट्रक वाले हैं या गुडस ट्रांसपोर्ट का धंधा करते हैं। इससे महंगाई और बढ़ेगी। मैं वित्त मंत्री जी से निवेदन करूंगा कि जैसे उन्होंने सर्िवसेज टैकस कई चीजों पर वापस ले लिया है, इसी तरह से ट्रांसपोर्ट पर लगाया गया सर्िवस टैकस भी विदड़ा किया जाए। आपने अपने बजट में ब्रांडेड मिल्क प्रोडकटस पर टैकस लगाया था, लेकिन अभी उस सम्बन्ध में आपने एक अच्छा संकेत दिया है, अगर वह अमल में लाते हैं तो स्वागत योग्य बात होगी। देश में ७० प्रतिशत लोग कृषि पर निर्भर करते हैं। कृषि का सहायक धंधा या तो ट्रांसपोर्ट है या मिल्क प्रोडकट है। अगर इन पर टैकस लगाते हैं तो इससे कृषि क्षेत्र भी प्रभावित होगा और हमारी इकोनोमी पर भी असर पड़ेगा। इसलिए मिल्क पर लगाया गया टैकस वापस लिया जाए। आपने आयकर की सीमा ४० हजार रुपये से बढ़ाकर ५० हजार रुपये कर दी है, अगर उसको ६० हजार रुपये कर दें तो अधिक अच्छा होगा। कयोंकि हमारे जो कर्मचारी टैकस देते हैं, वे ईमानदारी से देते हैं और लगातार देते हैं इसलिए उनकी तरफ भी ध्यान देना चाहिए, वैसे भी महंगाई काफी बढ़ गई है। हमारे कई साथी जब इकट्ठा होते हैं तो बात करते हैं कि महंगाई काफी बढ़ गई है और आपने हर वर्ग के लोगों की तनख्वाहें बढ़ा दी हैं, उनको आप टी.ए. और डी.ए. आदि भी देते हैं, लेकिन हम सांसदों की तनख्वाह अभी तक वही १५०० रुपये महीना है। इसके बारे में भी कुछ सोचा जाना चाहिए, कयोंकि आज के जमाने में १५०० रुपये महीने से कया होता है। अतः मेरा अनुरोध है कि इसमें व्ृाद्धि की जानी चाहिए। माननीय वित्त मंत्री जी ने जो प्रपोजल रखे हैं, उनका मैं समर्थन करता हूं और मैं समझता हूं कि इन बजट प्रपोजल्स से देश तरककी करेगा तथा आगे बढ़ेगा।

">SHRI V.V. RAGHAVAN (TRICHUR): Mr. Chairman, Sir, I oppose this Finance Bill introduced by our hon. Finance Minister. In our country, most of the wealth is accumulated by the monopoly capitalists, the big business houses and the landlords. The wealth is accumulated by these people. A majority of people in this country live below the poverty line. In such a situation, resource mobilisation proposed by the hon. Finance Minister in this Finance Bill will certainly adversely affect our economy itself. That is my point.

The hon. Finance Minister has completely let out the corporate sector free from new tax or levy. It is said that it helps investment. Our past experiences are there. The amount of concessions they give to the corporate sector is not invested as capital. It all goes unaccounted. That is the experience of our past years. The whole burden of new taxes and levies is imposed upon the middle class and the common people. The Finance Minister has kindly hinted that packed sweets and namkeens may be exempted from eight per cent excise duty.

What about other items? The prices of all the packed food items have touched the roof and if we add eight per cent excise duty on all these items, how can the common people afford them? After the presentation of the Budget, the price of tea has increased by about Rs.15/- per kilogram. This has happened even before the Finance Bill is passed. This is the position in our market. There is nobody to control it. The Finance Bill is not passed and the budgetary proposals have not been given effect to. But they have already increased the prices of these items. So, I urge the Finance Minister to withdraw this eight per cent excise duty which he has imposed on packed food items.

Sir, the Finance Minister has tried to widen the tax net. It is necessary and I agree with it. But instead of taxing the common people, why does he not look towards the immensely rich people to find out some new tax avenues? He has proposed that every household with a telephone should have to file income tax returns. Telephone is not a luxury item of the rich people now-a-days. Small professionals also require this facility. He has insisted that those who are having a telephone in their houses in the cities should file income tax returns. This is too much.

Sir, I would like to point out that there are thousands of people who own more than two motor cars. Some of them own even six luxury motor cars. Why can he not think of some kind of a family planning for the vehicles also? It is high time that we should think on these lines. If the Finance Minister imposes a heavy tax on those people who own more than one motor vehicle, nobody will complain. If he does that, the congestion on our roads may ease and we may also save motor spirit. He should think of taxing such immensely rich people instead of taxing the common people.

Sir, paying lip service to the small scale industries is of no use. The Finance Minister has spoken eloquently about these small scale industries when he presented the Budget. There is a proposal in the Finance Bill to impose eight per cent excise duty on rubberised coir mats also. The factories manufacturing these coir mats come under the small scale sector and they are spread in many parts of the State of Kerala. They are spread not only in Kerala, but they are there in the entire country. If the Finance Minister imposes eight per cent excise duty on rubberised coir mats, these factories have to be closed down because they cannot survive. We are now trying to find new uses of rubber. The one of the main product from the coconut trees is fiber coir and there are factories which are producing rubberised coir products. If the Finance Minister imposes eight per cent excise duty on such products, these small units in the State of Kerala cannot survive. So, I earnestly request the Finance Minister to withdraw this eight per cent excise duty imposed on rubberised coir mats and such other products.

Sir, as the professor has pointed out, there are huge arrears to be collected by way of taxes and other bank dues.

I have learnt that about Rs.45,000 crore are due to the banks by the monopoly houses. What are you going to do to collect those arrears? Such huge arrears of taxes are due from the corporate houses. When I was a Member of the Public Accounts Committee, I had a chance to scrutinize them. We were all surprised to see it.

Now you have put forward a new scheme, viz., the Kar Vivad Samadhan Scheme. This is rewarding the defaulters. Last year, it was VDIS. Now it is KVSS. You are giving concession to the defaulters. Then how will the honest people pay tax? If defaulters are given concessions like this through a number of schemes, then the taxpayers are cheated.

I may point out that these huge arrears of taxes and the prolonged litigation proceedings are due to the lack of vigilance on the part of your Department. Had the Enforcement Directorate and the various Departments which are led by you were vigilant and sincere, such huge arrears and prolonged litigations would not have been there. In the name of these schemes, you are giving concessions to the defaulters. Rewarding the defaulters is not at all the correct way to get things move in the right direction.

Sir, the Finance Minister had said in his speech that he is enhancing the share of the States. Now I see, while scrutinizing the Budget, that it has actually reduced. Last time, it was 5.6 per cent of the G.D.P., this time, it is five per cent only. The tax share dropped from Rs.43,602 crore to Rs.39,074 crore this year. In this connection, the Tenth Finance Commission's recommendations are there. I do not know how the calculations are done. But my point is that the share of the States has not enhanced. On the contrary, it has reduced. I hope, there will be some explanation on this point from the Finance Minister.

Sir, you have to give more funds to the States. They are in crises. They are all putting forward so many schemes and demands, but on this count, you have to somehow enhance their share. I do not know how the calculations are done. The Tenth Finance Commission's guidelines are there. Even then how is it that in 1997-98, they got Rs.43,000 and in 1998-99 they get Rs.39,000 crore? I do not know how this difference comes. Any how, this has to be compensated. This is my request.

Sir, lastly, in the name of restructuring and modernization, we are actually dismantling the very foundation of our economy.

I hope, your ideology does not share it. It all began, as my friend said yesterday, when we accepted the neocolonial powers' slogan of globalisation for the integration of the world economy. It was a trap laid by the neocolonial powers. The trap was complete, when we became a member of the WTO in December 1994. Under the compulsion of WTO's `slave clauses', as I call it, you have further liberalised imports allowing the multinational corporations to capture our market.

Kerala, the State from where we come, is the most hit by these liberalised import policies. Our peasants are in a great trouble. The producers of cash crops like rubber, coconut and spices are in a very bad shape. Used tyres are coming into the market from other countries. Polyurethane chemicals are coming from outside for producing synthetic rubber. All these things have created a very difficult position. Similar is the case with marine products also. I need not go to the extent of saying as to how it affects here.

After liberalising the imports and after the sanctions, there is a rush to invite foreign investment on their terms. I do not know as to how you can be in peace with the efforts that are being made. I wonder, whether the Swadeshi Movement of your Party is not clashing with these policies! Allowing them to invest 74 per cent of the capital and giving only 26 per cent to Indians means that complete management goes to them. We are also giving them our minerals. All these things are happening very quickly. I do not know as to how you can be in peace with these things.

Sir, what is the necessity for opening up the insurance sector, when it is working well? In 1956, there were 256 insurance companies and there were scams in all the private companies and the funds were looted. They were all in a very bad shape. Then, Pandit Jawaharlal Nehru took the initiative and nationalised the insurance sector, and we gained much. The insurance companies are helping the housing sector, water supply schemes etc. A huge amount is being spent on our developmental activities. Moreover, it is within our command. The insurance companies are helping the common people. You are saying that you are opening the sector to the Indian companies. Which Indian company is capable of conducting the insurance business? They are looking to the foreign companies for collaboration. The foreign companies will come through back-door. What is the necessity?

SHRI MURLI DEORA (MUMBAI SOUTH): Do you know the meaning of reinsurance? All the insurance companies are reinsuring with the foreign companies.

SHRI V.V. RAGHAVAN (TRICHUR): Shri Deora, I know that you are an expert in economics. Let my opinion be expressed. I do not agree with you and I do not agree with Shri Chavan also. We disagree with you on this point. So, opening up of the insurance sector, at this time, is quite unnecessary. It will adversely affect our economy.

SHRI MURLI DEORA : As such, he has not yet opened it.

SHRI V.V. RAGHAVAN : Being a Mumbaite, I know you are very much opposed to the interested in up of insurance.

A word about disinvestment. As reports appear in the press, I am very much surprised that the most well-managed, the most profit-making public sector units are listed for disinvestment. Why? what is a reason for it. Why do you disinvest ONGC? Why are you disinvesting FACT, the most profit-making unit in Kerala? That also is listed. I do not know what the Government is thinking on its investment policy and unnecessarily you are opening up the insurance. You are disinvesting the most profitable public sector unit. This kind of step will not help us. It will ruin our economy and once again I appeal to the hon. Finance Minister that "You are rushing against the campaign you have conducted during election. The BJP, the RSS and the Jan Jagran Manch have told the people that they are against the multinationals and against the imperialist forces and against the neo-colonialists. We have a different path of economics. We are Swadeshi" and you are now drifting from that path. Action and words should not be different. So, think of it. It is quite necessary. You should reconsider it. These things will ruin us. We are not obliged to act upon other Clauses of the WTO. They are not implementing all the Clauses. The European Union has their own legislations. They are following their own interests. They are not keeping up the Clauses of WTO. Then why should we enforce all the Clauses? We are not obliged to keep all these Clauses. We have to choose our own way. So, you should remember that drifting from your election words pledges to the people is not at all good for the country and for the party.

I once again appeal to the hon. Finance Minister that excise duty on packed foods should be withdrawn and the 8 per cent excise duty on rubberised coir mats and such other products of the small-scale industry should be withdrawn. i hope You should consider all these points.

SHRI G.M. BANATWALLA (PONNANI): Sir, I am on a point of order. My point of order is that the Finance Minister started with shaking his head even when proposals are coming from the side of the Opposition. I appeal to him not to disappoint us so much! THE MINISTER OF FINANCE (SHRI YASHWANT SINHA): I impress upon the hon. Member not to relate my body language to the comments which have been made here! ">SHRI SUDIP BANDYOPADHYAY (CALCUTTA NORTH-WEST): Sir, I rise to support the Bill. Well done, Finance Minister, you are again on the striking headlines today and you have also become the darling of the news media. Even those who have criticised you have written in favour of you because you have given a boost mainly to imported sectors while introducing the Finance Bill yesterday in which you have categorically mentioned 100 per cent income tax exemption on information technology export, duty free import of software allowed to bring down Customs duty on information technology products to zero by the year, 2003.

Naturally, you have to share all these things.

The Finance Bill is mainly some proposal to mobilise resources. Mr. Minister, naturally you have to impose taxes and duties - whether direct or indirect. But this time, it is a matter of great regret that in spite of time allotted to discuss the Demands for Grants of different Ministries, only one Ministry's Demands for Grants were discussed. Only one or two Members were allowed to speak on the Demands for Grants in respect of the Ministry of Agriculture on the floor of the House. And the discussion was there for only one hour. So, many points, which could have been discussed during the discussion on the Demands for Grants of different Ministries and Departments, were not discussed at all. I can mention one or two such points which come to my mind. I will do so after my deliberation on the Finance (No.2) Bill.

Recently, in a passing comment with the Doordarshan channel, the hon. Minister was telling that he did not impose taxes on vegetables and so he was no more responsible for the price hike which is causing tremendous anxiety to the common section of the people. I would certainly agree with him. But what I would rather suggest to him is that when the prices of agricultural products are going up sky high, the export of these agricultural products, which we export now, should be stopped. What are the agricultural products that we are now exporting? They are: pulses, rice, wheat, cereals, tobacco, sugar, molasses, poultry, dairy and horticulture products...(Interruptions)

SHRI YASHWANT SINHA: Sir, as the Chairman of the other House has summoned me, I seek your leave and the leave of the House to go. I would say that my Minister of State and the other Cabinet Ministers are here...(Interruptions)

DR. T. SUBBARAMI REDDY:Sir, from the main opposition party, I am going to speak. So, I want that the hon. Finance Minister must listen to me. I am going to give some important suggestions. They are very important.

SHRI YASHWANT SINHA: I will go and come back. You wait for me. I have been summoned by the Chairman of the other House. So, I have to go. I want the leave of the House. My Minister of State is here...(Interruptions)

DR. T. SUBBARAMI REDDY (VISAKHAPATNAM): All right. I will wait because I have to give some very important suggestion on the important Finance Bill...(Interruptions)

THE MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE MINISTRY OF FINANCE (BANKING, REVENUE AND INSURANCE) (SHRI KADAMBUR M.R. JANARTHANAN): I will take down every word of what you say...(Interruptions)

MR. CHAIRMAN : Dr. Reddy, he will return soon. The Minister of State is here.

DR. T. SUBBARAMI REDDY :I want both the Ministers to listen to me. Shri Yashwant Sinha, when will you come back?...(Interruptions)

SHRI YASHWANT SINHA: Please wait till I come back.

MR. CHAIRMAN: As I said earlier, the Minister of State is here. The Finance Minister will come back.

DR. T. SUBBARAMI REDDY : As I said, I want both the Ministers to listen to me. Ours is the main opposition party. Today, I am the first speaker from the main opposition party. When I speak, I want both the Ministers to listen to me. So, I will wait till then.

SHRI SUDIP BANDYOPADHYAY :Coming to my point, I would like to say that we are exporting horticultural products, groudnuts, fruits and vegetables, and processed vegetables.

It is a most alarming sight to see that last year, the country's total export in respect of agriculture was to the extent of 15 to 18 per cent. The export of agricultural products was to the tune of Rs.21,021 crore whereas India's total export was to the tune of Rs. 1,18,817 crore. So, when price is going high, we should all take cautious steps to see that this export is stopped at least for one or two years.

Next, all sorts of sales taxes on essential commodities and the life-saving drugs have to be withdrawn. They have been mentioned in para 5.5 of the Economic Survey. Poor people, who have been given prescriptions to purchase life-saving drugs, express their inability to purchase. We found that many times. So, we make a positive proposal to the Government to look after this problem and to see to it that the life-saving drugs are made totally tax-free. The hon. Minister should announce about it today while replying to the debate on the Finance Bill.

16.00 hrs. This Government announced that the rate of duty on petrol be increased by one rupee per litre. There was some tremendous confusion about this. It has been mentioned in the Finance Bill also. Even Rs.4 was charged extra on the sale of per litre of petrol due to the total mismanagement and lack of positive announcement. I do not know what were the reasons for that. Even the money that was charged extra was not refunded. Those who purchased petrol for Rs.4 more per litre from the petrol pumps were refused refund of the extra amount. The reason for this is still not known to us. It has happened due to lack of infrastructure.

You had categorically mentioned in this House that you would be saying at the time of discussion on the Finance Bill, about the infrastructure sector. Shri Chavan from the Congress side mentioned about infrastructure of railways. But I would rather seek a clarification from the Government regarding infrastructure units of electricity generation, crude oil, coal, refinery, steel and cement because merely by imposing taxes and duties, nothing could be achieved. You must evolve a proper infrastructure system.

In your Budget speech on page 19, para 180, a very important issue has been mentioned about the postal workers. It has been mentioned that the changes would take effect from a date to be notified after the Finance Bill is passed. It says and I quote:

"A revision of tariff for postal services has become unavoidable. However, in the interest of the common man and the role of the print media in a democracy, there will be no change in the tariff for postcard and registered newspapers. However, the rate of competition postcard is being raised from Rs.2 to Rs.3, Inland letter from Re.1 to Rs.1.50, letter from Rs.2 to Rs.3 for every 20 gms. or part thereof and parcels from Rs.8 to Rs.10 for every 500 gms. or part thereof. There are also certain other changes which are explained in the Memorandum circulated along with the budget documents. The changes would take effect from a date to be notified after the Finance Bill is passed. The revisions proposed are estimated to yield an additional revenue of about Rs.270 crore in a full year and about Rs.180 crore in 1998-99."

1604 hrs. (Shri Basu Deb Acharia in the Chair) The postal strike which is going on in the country at this stage is causing tremendous difficulties to the common people of this country. The matter is being discussed on the floor of the House. In the Budget speech, specially a paragraph has been added to look after the problems of the postal employees. But still the fate or the movement or the decision of the Government is not clear to the Members of this House in spite of the decision that is being taken. The Minister has given a reply. But what would be the approach of the Government to see that postal strike-oriented problem is sorted out and common people can get a relief from this burning problem which is causing tremendous anxiety?

The Finance Minister is imposing taxes and duties upon us. But what is happening is that the United States along with other countries like Japan, Germany, Sweden, Denmark, Norway and the Netherlands are imposing sanctions on us. We want to know categorically whether you are going to re-allocate your budgetary provisions to the different departments due to these sanctions.

What will be the fate of the on-going accepted projects? In any way will these sanctions affect the economic structure or the budgetary proposals which have been announced by the Government?

Now, I will come to a few of your tax proposals. It has come out in the newspapers also. There is still hesitation on the issue of the eight per cent excise duty on branded sweets and namkeens though it has been kept in abeyance. But I would appeal to the Government to announce withdrawal of this eight per cent tax because Bengali people are very much fond of taking sweets, and they have categorically asked us to see that this tax is withdrawn.

In the case of medical instruments and appliances, and on pollution control equipments, you have raised the tax from five per cent to eight per cent. You should not do that. In my opinion, the pollution control is the utmost necessity in the present day world. Any imposition of tax on pollution control equipments will not reflect the proper intention of the Government to make our country pollution-free. Similarly, on medical instruments and appliances also the tax should be withdrawn.

A few hon. Members have categorically mentioned about the public sector units both at the Central and State levels. I would like to mention about the modernisation of a few public sector units including IISCO MAMC, MPC, Metal Box, and Cycle Corporations. All these units are pending with the BIFR. I would request the Government to kindly see to it. You have proposed to hand over a few such public sector units in the hands of the foreign investors. One such unit is BALCO, that is, Bharat Aluminium Company. Sir, our suggestion is that without announcing disinvestment of these public sector units, can you not give relief of taxes to those Indian industrialists who can take over them or give you an offer by which they can run or take one industrial house? If you announce a better package or propose to give some relief to each industrial house to take over or to run such public sector units, I hope, they will come forward. So, in this regard, I suggest that serious attempts should be made from the Government side.

This Government's brain child is the Kar Vivad Samadhan Scheme which is mentioned in paras 89 to 101 of the Finance Bill. It is to be seen that the process of this Kar Vivad Samadhan is transparent. It should be without any hazard. Without having transparency in the tax proposals, no Government can mobilise its resources. I would also suggest to the Government to give tax relief and encourage those who will come forward with the full-fledged proposals throughout the country in the Ninth Plan.

Government should take all out steps because one of the major causes for the price hike is not having sufficient number of cold storages in the country. Therefore, in the Ninth Plan, cold storage sector will have to be given priority. Otherwise farmers will be in real trouble. They are increasing production, they are contributing to the welfare of the nation, but ultimately they are not being benefited due to lack of cold storage facility. Therefore, it is badly needed at this juncture. There should be an all-out plan to build cold storages in the country in huge numbers because of which the price rise can also be contained.

Shri Murli Deora has made a number of suggestions and has put forth a number of ideas the other day. One of them is the crop insurance scheme. The Central Government has allocated in 1998-99, Rs.100 crore. When the GIC does not have much experience to work at the village level, why not set up another corporation to look after these problems? It can work along with the Departments of Agriculture, Rural Development and NABARD. The Government should take a positive decision in this matter.

I support the Bill and expect that in regard to the policies and proposals which the Finance Minister had announced, the Government would announce some positive decisions.

">DR. T. SUBBARAMI REDDY (VISAKHAPATNAM): The Finance Minister is not present here.

MR. CHAIRMAN :The Minister of State is taking notes. There is no problem.

DR. T. SUBBARAMI REDDY : Mr. Chairman Sir, I would have been happy to speak in the presence of both the Ministers. It is a disappointment that when the representative of the main opposition, the Congress Party is to speak for the first time today the hon. Finance Minister is not present in the House. We feel very sad about it. Of course, Shri Kadambur M.R. Janardhanan is here, but I would have liked both the Ministers to be present here.

MR. CHAIRMAN: Two Ministers are here; one is a Cabinet Minister and another is a Minister of State. So, you can continue.

DR. T. SUBBARAMI REDDY : I must start with the remembrance of one of our great poets:

  "लोकोत्रायण: संघटन: निरुपमा: सन्िनवेश: न द्वितीय:"

The dream of the people of India is to see the glorious prospect of this country, eradication of poverty and creation of employment potentiality. I must say that every youth who is educated in this country must get employment. The poor people who are living in rural areas and remote areas must have a minimum reasonable life. This is the most important million dollar question. This has been the dream of everybody. But nothing is happening.

In the Finance Bill, our Finance Minister has been very optimistic. He has taken a very optimistic view that he would be able to raise a lot of revenue. In spite of having five to six per cent fiscal deficit, which may go up to 6.2 per cent also, minus two per cent agricultural growth, industrial growth falling down, inflation going up; with all these things in the background, he is still optimistic that he is going to derive very good results in respect of industrial growth, employment potentiality and poverty eradication. He has been dreaming so many things. Anyway, we welcome his optimistic views. He has given incentives to a number of schemes. Of course, it will be short-lived and politically perhaps it may be just a temporary inspiration for people.

Now, my question is this. How are we going to solve this problem? How are we going to provide houses for the poor people. As Shri Ram Jethmalani's dream is to provide houses for the poor people, the BJP's dream is to eradicate poverty and provide `ram rajya'. The answer is, you must create an all-round good atmosphere. Let us remember that if we help the industrial sector, it should not be misunderstood that we are helping the rich industrialists. It is not so. We can make India one of the great countries of the world only by building the industrial sector. If we want to help industrial growth, let us remove the wrong notion that we are helping the big industries.

The United States of America, under Section 105 (b) of the Nuclear Non-Proliferation Act, has stopped all facilities that were given to us. They have immediately stopped the developmental assistance. They have instructed their EXIM Bank not to give any assistance. They have prohibited their commercial banks from extending loans and credit facilities except for food grains and food items. They also want to oppose us tooth and nail in the World Bank and in the IMF on the question of extension of credit facilities for us. While they are taking this action on the one side, on the other, Japan, Germany, Canada and other countries have decided to stop all assistance given to us.

The hon. Minister of Finance, the Ministry of Finance and the Government of India may feel that the sanctions do not have any impact on the economy but that is totally incorrect. Of course, they are under a wrong impression. There are two types of assistance, short-term and long-term. Whatever assistance, loans and help have been already agreed upon by America and other countries are not going to be stopped. But they are not going to give any assistance in the future. Therefore the present proposition in the Budget is that the finance situation and the country's economy would not be affected. They are happy with the philosophy that nothing will happen. But this is a chain reaction. It is not a question of just one Budget and one Finance Bill. They are going to have a stupendous economic burden and a magnificent impact on the Indian economy and the Indian financial position. Therefore, we have to bear this in mind here. I am not just indulging in criticism. I do not believe in criticising for the sake of mere criticism. There should be constructive, practical and positive criticism. We have to give suggestions which - the Government must bear in mind - are in the interests of the country and in the interests of building this nation.

While the sanctions are giving us trouble on the one side, on the other, there are financial and economic crises in the East-Asian countries and help from them is also disturbed. At this stage, how are we going to build infrastructure, power projects, roads, ports and industrial units? Without their help it is not possible. Therefore, I draw the attention of the hon. Minister of Finance and request him to work out and see how they can do it without their help.

There is gross red-tapism and nothing works in Delhi. For example, in my constituency, we are dreaming of having projects in Vishakapatnam, which will give employment to thousands of people and also increase revenue and add to the GDP. If the Ministry of Finance says something in respect of a project, the other Ministries say something else. There is no coordination between different Ministries. There is a total lack of understanding. I have suggested many times - at least, if this Government wants to face the challenge - that they should form a coordination committee and produce results. There should not only be talks and statements. The results should be produced by implementation of constructive methods.

Today, the capital markets have crashed and no institution is giving any loan to industries. I would like to ask: `Which new industry has come up in the country in the last two or three years? How many industries have come up?' They are dreaming of ten per cent industrial growth. They will not have even three per cent growth at this rate.

The Foreign Exchange Regulation Act was formulated with the object of regularising the foreign exchange flow.

Again in 1973, on the basis of the 56th Report of the then Public Accounts Committee of 1968 and 47th Report of the Law Commission, they totally modified it. In 1947, there were 21 Sections. They introduced 86 Sections in 1973 and again modified in 1993. They have given sweeping powers under this Act. The junior officers can just act like the biggest men of the country and create a scare. I am shocked to know this. They have filed 16,000 cases but only in 72 cases, people are convicted. Is this the way of doing it, Sir? If somebody is guilty, there is no question of sparing him. You must punish him, whoever he may be. The philosophy of our people is to punish the guilty ones. But it does not mean that you have to create a scare in the Indian economy and give an impression to the world that the people of India are only after democratisation. It always comes in the newspapers that so and so has been arrested and so and so has been prosecuted. But nothing happens. About the ITC case, the entire industry is shocked to know that the court of New York has recently said that ITC was not at fault. Then who is responsible for this? The answer to this question is FERA. Then how do you expect the Indian economy to grow and how do you expect the industry to grow?

I will give you an example. The major goals in 1973 were:

1) Savings in the large outflow of foreign exchange

2) Prevention of leakage of foreign exchange

3) And reduction in the level of external dependence for our economic needs.

In 1973, they said that the then situation calls for an early new sets of goals. Again, as on today, where do we stand? Those goals were:

1) A clear signal to foreign investors that FERA is designed to welcome policy investor and make his operations smooth and hassle-free,

2) Ensuring dynamic growth of the economy,

3) Importing competitiveness to the economy both domestically and internationally,

4) Modernisation and upgradation of technology in existing industries and leap-frogging into frontier technologies to catch up with the advanced countries,

5) To integrate the Indian economy with the global economic networks of finance, industry, technology, market and management.

As on today, we are dreaming to build up an economy. We are dreaming to inspire the world to come to this nation and participate in the investments to build up our industry and see that a tremendous employment potential is built up. When your child becomes a graduate today, where is the job for him? There is frustration among the people. There is violence going on because of this frustration. Since there is no goal of prosperity in the minds of the youth, they are going in the wrong direction and track. The only solution to this problem is to forget this misunderstanding. Let us have a human touch. Let us think, before leaving this world, what we have done to our country, society and profession. Let us not politicise issues. Let us not dramatise them. Let us not trouble and harass people. Let us build this great nation.

MR. CHAIRMAN :Dr. Reddy, please conclude.

DR. T. SUBBARAMI REDDY :If you want, I will sit down. I am speaking on Finance Bill. If any of my points are waste and are not useful for the Indian economy and finance, I will sit down. If they are useful, kindly allow me to speak. I will not give a lecture or a speech. I will give only valid points.

MR. CHAIRMAN: You are giving a very good speech and good suggestions.

DR. T. SUBBARAMI REDDY (VISAKHAPATNAM): Government, vaguely and indirectly, said that they are going to replace FERA by FEMA. When are they going to do it and what are they doing for it? I want a commitment from the Finance Minister while giving his reply as to when he is going to do this. When is he going to give a new atmosphere? He is talking about globalisation, liberalisation and inviting people from all over the world asking them to come to our great country and invest here which has glory of thousands of years. But what is happening?

The Finance Minister must also give a reply as to how he is going to control inflation. There is no doubt that he has introduced a number of schemes like Samadhan and so on. I appreciate it. Under Samadhan, we are shocked to know that five lakh cases are pending and Rs.40,000 crore are under litigation in the income-tax.

In so far as customs and excise duties are concerned, one-and-a-half lakh cases are pending and an amount of Rs. 12,000 crore is also pending. It is welcome. But the mistake in this Act is `samadhan'. If we say `samadhan', nobody will take it seriously. They must say that from so-and-so date, the samadhan will be functioning. Afterwards, there would not be any `samadhan'. Unless there is a specific date or there is some compulsion, a man takes it easily. If a temple is in the next house, he will never see it. देखेंगे बाद में, जल्दी कया है, वैसे भी समाधान जल्दी नहीं आता।

You never get the required amount also.

MR. CHAIRMAN : There are a number of speakers. We have to conclude the debate today.

... (Interruptions)

DR. T. SUBBARAMI REDDY : We want to see that our indigenous industry is protected. Take, for instance, sugar. Sugar is the most important product. Millions of workers are depending on the sugar industry. What is the point in encouraging import of sugar? We cannot imagine it. You are only charging customs duty at the rate of five per cent. Indirectly, it is 12 per cent only. Sugar manufactured in our country is being taxed at 20 per cent. Shri Janardhanan, please note down that. That means, sugar produced in India will attract 20 per cent tax and sugar, which is imported, gets 12 per cent tax. What is the logic? If you take the international system, even Pakistan and Bangladesh are charging 40 per cent to 50 per cent customs duty. We are charging six to 12 per cent only. Therefore, the customs duty should be planned in such a way that it should not kill the Indian industry.

We are shocked to know that today, we are having a stock of 10 million tonnes of sugar for free sale this year. And 12.6 million tonnes of sugar is being produced this year. So much sugar is always there in the market. We are importing two lakh tonnes. We have already signed a contract. The sugar is coming mostly from Pakistan. How are we justifying it? Once you are losing the foreign exchange, you are losing the revenue and you are harming the Indian sugar industry. The Indian Sugar Mills' Association have been representing that a gross injustice has been done. A conspiracy is going on to encourage the imports to help some section of people. So, I am drawing your attention to do justice.

About revival of the capital market, we have to take some pains. In 1990-91, the iron and steel industry was totally decontrolled. They started a lot of mini blast furnace plants spending Rs. 3,000 crore. Now, they are all in a bad shape because of wrong import policy and having anti-dumping policy. When coke is being imported, you are unnecessarily having anti-dumping charges. That is also damaging that industry. One lakh workers are depending on that industry. Please help in that respect also.

Shri Ananth Kumar has just now left. The entire Finance Bill is silent about development of the airports in the country. The airports are not a luxury. In the modern society, an airport is also a necessity to build this nation. No money has been provided. You want to go for BOT. BOT will come only as grants and nothing will happen in this country. Therefore, the Minister of Finance must bear in mind that at least besides the four important cities, namely, Mumbai, Chennai, Delhi and Calcutta, other small cities, like Vishakhapatnam, Cochin or Coimbatore, and all medium cities should be given importance. The airports at these places should be modernised. For that, either you give money or borrow money or you make available somebody to invest money.

Lastly, you must bear in mind the sanctions. Regarding the Foreign Exchange Act, you must not forget that no country in the world, not even Bangladesh, Sri Lanka and Pakistan, are having this Act. Why are we having this Act here? This Act should be abolished immediately. There should be sugar, coking coal, revival of the capital market, and also facilities for drinking water. You are silent about it. You must provide more amount for drinking water, and also see that the poor people in the rural areas are provided houses. You must give money for what Shri Jethmalani is dreaming about.

MR. CHAIRMAN : A decision has been taken in the Leaders meeting that the discussion on Finance Bill would be completed today even if the House is required to sit beyond eight or nine o'clock. All the Members who wish to speak on it would be accommodated today and the Finance Minister would reply to the debate tomorrow. So, I request the hon. Members to be brief.

SHRI INDERJIT SINGH RAO (MAHENDRAGARH): Sir, I am on a point of order.

MR. CHAIRMAN: Under which rule you are raising the point of order?

SHRI INDERJIT SINGH RAO (MAHENDRAGARH): A point of order can be raised at any time regarding the business which is before the House. Unless you give me a chance, I cannot tell you what I want to say. How can you rule out my point of order even before I have raised it?

MR. CHAIRMAN: You have to raise a point of order under some rule.

SHRI INDERJIT SINGH RAO:Sir, I am raising it under Rule 376 which says that a point of order can be raised at any time as long as it is within the purview of the House.... (Interruptions)

MR. CHAIRMAN: The rule says that the point of order may be raised in relation to the business before the House at the moment.

SHRI INDERJIT SINGH RAO :The business before the House is that the Chair wants to postpone it. I have an objection to it and I am raising a point of order on that.

MR. CHAIRMAN: Which business is being postponed?

SHRI INDERJIT SINGH RAO :You wish to extend the House beyond 1800 hours.

MR. CHAIRMAN: It has been decided in the Leaders' meeting.

SHRI INDERJIT SINGH RAO :The House is supreme. The House has not decided it so far.

MR. CHAIRMAN: There is no point of order. It has been decided in the Leaders' meeting. This is the convention of the House. There is no point of order.

... (Interruptions)

SHRI INDERJIT SINGH RAO :You have to seek the permission of the House.... (Interruptions) We do not want to sit after 1800 hours.

SHRI KHARABELA SWAIN (BALASORE): Why is he wasting the time of the House? Unnecessarily, he is raising the point of order.

MR. CHAIRMAN: There is no point of order. At the appropriate time, sense of the House will be taken.

... (Interruptions)

MR. CHAIRMAN: At 1800 hours, sense of the House will be taken. For the information of the Members, I have announced the decision taken in the Leaders' meeting and I request the Members to be brief.

SHRI INDERJIT SINGH RAO :Mr. Chairman, Sir, I want your ruling on this issue, whether the House is supreme or not, whether the Executive Committee meeting that you are alluding to is sufficient to overrule the House?

I want your ruling whether the House is supreme or not.

MR. CHAIRMAN: I have informed the Members of the decision taken and the sense of the House would be taken at proper time. Why do you worry about it?

"> श्री चिन्मयानंद स्वामी (मछलीशहर): सभापति महोदय, मैं सबसे पहले आपका आभार व्यकत करता हूं कि आपने मुझे इस महत्वपूर्ण बिल पर विचार प्रस्तुत करने का अवसर प्रदान किया। हमारे वित्त मंत्री जी ने जो बजट प्रस्तुत किया है, वह नश्िचत ही भारतीय जनता पार्टी के नेत्ृात्व में गठित इस सरकार का पहला बजट है और अपने आपमें कई मौलिकातों को लेकर सामने आया है। स्वाभाविक था, इस क्षण में जो बजट आएगा, उसमें कुछ मौलिक बातें होंगी और वे मौलिक बातें हमारे देश की अर्थ व्यवस्था को आधारभूत सहयोग देने के लिए होंगी और आधारभूत साधन उपलब्ध कराने के लिए होंगी। पिछले पचास वषर्ों से जिस अर्थ व्यवस्था से हम जूझते रहे थे, उससे हमारे देश की जरूरतें पूरी नहीं हो पा रहीं थीं। हमारे देश का वह आदमी जो गांव में रहता है, उसके पास रहने के लिए घर नहीं था। वह आदमी जो गांव में रहता है, उसके पास पीने का पानी नहीं था, चलने के लिए सड़कें नहीं थी, जीवित रहने के लिए दवायें नहीं थीं और पढ़ने के लिए स्कूल नहीं थे। अगर ये सब होते, तो शिक्षा का प्रतिशत जो इतना गिरा हुआ है, वह इतना गिरा हुआ न होता। मरने वालों की इतनी तादाद न होती, देश प्रगति के रास्ते पर बढ़ता। विपुल संसाधन, तमाम कच्चा माल, श्रम संपदा होते हुए भी हमें आर्िथक दृष्िट से जिस गति से आगे बढ़ना चाहिए था उस गति से नहीं बढ़ पाए। उसके पीछे कारण केवल आर्िथक नीतियों का गलत होना था। यहां आर्िथक नीतियां कभी ऐसी नहीं बन पाईं, जो हमारी अर्थव्यवस्था को सुदृढ़ करने के लिए ऐसा आधार प्रस्तुत कर पाती, जिनके द्वारा हमारी आत्मनिर्भरता बढ़ती। महोदय, मैं निवेदन करना चाहता हूं कि जब जून के महीने में बजट प्रस्तुत किया गया था उस समय लोगों को यह अपेक्षा नहीं थी कि इस प्रकार का बजट आएगा। चारों ओर आर्िथक मंदी, बेरोजगारी, राजस्व घाटा था, राजकोषीय घाटा, मुद्रा का अवमूल्यन, बाजार भाव का बढ़ना, यहां तक कि नाभिकीय परीक्षण से एक ऐसी स्िथति बनी थी जिससे पूरा देश यह उम्मीद करता था कि एक ऐसा बजट आएगा जिसमें देश को बहुत तकलीफ उठानी पड़ेगी। मैं अपने गतिशील वित्त मंत्री जी को धन्यवाद देता हूं, जिन्होंने प्रधान मंत्री जी की भावनाओं का आदर करते हुए बजट में उन सभी सुविधाओं का समावेश किया, जिनके द्वारा देश को आर्िथक दृष्िट से सम्पन्न करने की जरूरत होती है। हमारे देश में तमाम ऐसे राष्ट्रीय उपक़म थे, सार्वजनिक क्षेत्र में चलने वाले उद्योग थे, जो बरसों से बीमार चल रहे थे। केवल उनके कर्मचारियों को वेतन दिया जाता था, उनमें उत्पादन शून्य हो चुका था। उत्पादन न होने और खर्चे बढ़ते जाने के कारण देश के ऊपर कर्जे का बोझ बढ़ रहा था, उसके उपाय खोजने के प्रयास नहीं किए गए। हम अपने विचारों में, संस्कारों में बंधे हुए थे, कुछ मिथ्या आडम्बरों में बंधे हुए थे, जिनसे हम छूटना नहीं चाहते। लेकिन कुछ साल पहले इस देश में जो दौर शुरु हुआ, समाजवादी नारे के नीचे उस राष्ट्रीयकरण के दौर को उदारीकरण के नाम पर, निजीकरण के नाम पर रोका गया था, लेकिन वह निजीकरण, उदारीकरण देश के आर्िथक दबाव को देखते हुए नहीं, देश की अर्थव्यवस्था को सुदृढ़ बनाने के लिए नहीं बल्िक विदेशी दबाव में किया गया था और उस समय भी देश का शेयर बाजार गड़बड़ाया था, उछला था, ऊपर गया था। जब देश का शेयर बाजार ऊपर गया तब लोग तालियां पीट रहे थे, बड़े खुश हो रहे थे कि फोरन इनवेस्टमेंट के कारण, विदेशी धन आने के कारण शेयर बाजार ऊपर जा रहा है, लेकिन चार महीने बाद ही लोगों को पता चल गया था कि यह घाटे का नहीं, घोटाले का काम था। यह एक षडयंत्र था जिसके तहत शेयर बाजार ऊपर गया था, लेकिन आज शेयर बाजार ऊपर नहीं जा रहा है, नीचे जा रहा है, जिसको लेकर यह कहा जा रहा है कि यह हमारी आर्िथक नीतियों की गलती के कारण है परन्तु ऐसा नहीं है। अगर मूड़ी ने हमारे देश की रेटिंग को कम न किया होता तो शायद शेयर बाजार पर यह प्रभाव न पड़ता। लेकिन अब शेयर बाजार सुधर रहा है और सुधार की ओर आगे बढ़ रहा है। हमारे वित्त मंत्री जी ने जो बात कही थी वह सामने दिखाई पड़ने लगी है। शेयर बाजार पर नियंत्रण होने लगा है। महोदय, मैं सार्वजनिक उपक़मों की बात कर रहा था। सार्वजनिक उपक़मों के घाटे को पूरा करने के लिए हमें जितना पैसा खर्च करना पड़ता था, अब उसकी नीति बदल गई। उस बदली हुई नीति में सार्वजनिक उपक़मों को हम देख सकते हैं कि वह चलने लायक हैं या नहीं, अगर चलने लायक हैं तो उनको चलाने का इंतजाम किया जा रहा है। अगर वे चलने लायक नहीं होंगे तो उनका विकल्प ढूंढना चाहिए। उसमें जो भी कर्मचारी लगे हुए हैं उनको कहीं न कहीं स्थापित करने का या उनके लिए जो पैकेज बनाया गया था, वीआरएस स्कीम बनाई गई, उससे उनको राहत मिलेगी। पहले थोड़ा सा उनको देकर जो हटाने की कोशिश की थी वह अब बहुत कुछ बढ़ाया गया है। जहां १५ दिन का प्रतिवर्ष के हिसाब से पेमेंट दिया जाता था वहां ४५ दिन तक उसको बढ़ाया गया है। यहां तक कि अगर वे ३० साल की सर्िवस पूरी कर लेते हैं तो उनको पांच साल का इकट्ठा वेतन देकर संतुष्ट करने का प्रयास किया गया है। देश की बिगड़ती हुई अर्थव्यवस्था को सुधारने की दृष्िट से यह सार्थक कदम है। इसी तरह हम यह कहते है कि विदेशी पैसा देश में आये। लेकिन सवाल यह है कि विदेशी पैसा किस क्षेत्र में आये? अगर वह आधारभूत ढांचे को डैवलप करने के लिए आता है, उन संसाधनों को विकसित करने के लिए आता है जिससे औद्योगिक विकास हो, जिससे हमारी जरुरतों को पूरा करने के लिए हमें बुनियाद मिले, आधार मिले, उन उपक़मों में आये जिससे हमें रोजगार के अवसर मिलें तो अच्छा है। आज उन्हीं में पैसा आमंत्रित किया जा रहा है। मैं वित्त मंत्री जी को धन्यवाद देना चाहता हूं कि आज के सारे समाचार पत्रों में आया है कि उन्होंने कम्प्यूटर साफटवेयर पर आयात शुल्क समाप्त किया है। मैं केवल इतना निवेदन करना चाहता हूं कि यह पहला बजट है जिसमें आधारभूत संसाधनों की जरुरत को समझा गया है। ५० साल तक हम इस बात से इंकार करते रहे कि कृषि हमारे देश की जरुरत है और हम बाहर से अनाज खरीदते रहे। सब चीजें बाहर से देश में मंगाकर लोगों को खिलाते रहे और हमने अपने देश को मजबूत बनाने की कोशिश नहीं की। पहली बार कृषि के क्षेत्र में एक क़ांतिकारी कदम उठाया गया है और वह कदम अभिनंदनीय है। इसके लिए बजट में ५८ प्रतिशत दे देना, यह अपने आप में एक उदाहरण है। इसी तरह से ग्राम विकास में बजट को १९ प्रतिशत कर देना, यह भी एक उदाहरण है। शिक्षा के क्षेत्र में बजट में बढ़ोत्तरी, सामाजिक क्षेत्रों में बजट में बढ़ोत्तरी - चाहे वह स्वास्थ्य का क्षेत्र हो या परिवार कल्याण का क्षेत्र हो, या बच्चों के कल्याण का प्रश्न हो अथवा सामाजिक कल्याण का प्रश्न हो, सब जगह बजट बढ़ा हुआ दिखाई पड़ता है। एक तरफ हम बजट बढ़ाने की बात करते हैं और दूसरी तरफ जरुरतें पूरी करने की बात करते हैं। लेकिन दूसरी तरफ हमें यह भी सोचना चाहिए कि पैसा कहां से आये? पैसा लाने के जो तरीके हैं वे भी वैज्ञानिक ढंग से तैयार किये गये हैं। इसमें यह नहीं किया गया है कि जो टैकस दे रहे हैं केवल वे ही टैकस दें। इसमें टैकस का दायरा नहीं बढ़ाया गया है बल्िक टैकस-पेयर का दायरा बढ़ाया गया है जिससे किसी को दिककत नहीं आती है। पहले टैकस लगाने की बात सोची थी कि ट्रांसपोर्ट पर टैकस लगाया जाए, पंडालों पर टैकस लगाया जाए, लेकिन फिर सोचा गया कि इनकी जरुरत नहीं है। दूसरी ओर वे लोग जिन पर टैकस लगाने की बात पहले नहीं सोची जाती थी चाहे चार्टेड एकाउंटेंटस हों, इंटीरियर डैकोरेटर्स हों, या दूसरे काम में लगे लोग हों, जिनको हमने छोड़ दिया था, आज १२ बड़े शहरों को हमने इस दायरे में ले करके एक संदेश दिया कि जो लोग टैकस दे सकते हैं उनसे टैकस लिया जाए और और दे सकने वालों का दायरा बढ़ाया जाए। आज तक कर देने वालों को हमने सम्मान की दृष्िट से नहीं देखा। "समाधान" पर चर्चा और आलोचना हमारे मित्रों ने की है। वी.डी.आई.एस. की एक स्कीम आई थी और उससे सरकार को पैसा मिला था। हम उस पर नहीं जाते हैं, हम "समाधान" की बात इसलिए करते हैं जैसे हमारे मित्र चंदू माजरा ने कहा था कि ६४ हजार करोड़ रुपये या कुछ यहां पर उन्होंने नम्बर बताया था कि इतना पैसा विवादों में फंसा हुआ है। अगर वे विवाद कम समय में निपटा लिये जाएं तो कया वह पैसा हमें नहीं मिल सकता है? "समाधान" के द्वारा हमने वहां तक पहुंचने की कोशिश की है जिससे वह पैसा वापस आये। देश के निर्माण में, देश के संचालन में और देश की सम्ृाद्धि में जो व्यकित अपना योगदान अपनी कमाई से दे सकता है उसको सम्मान देने की बात हम इन ५० वषर्ों में नहीं सोच पाए। पैसे वालों की हम हमेशा निंदा करते रहे। पहली बार टैकस-पेयर को सम्मान देकर हमने एक सकारात्मक कदम उठाया है। जो लोग टैकस देकर देश की सम्ृाद्धि में योगदान करते हैं, उनको हमें सम्मान देना ही चाहिए। कर प्रणाली को सरल बनाने की पहल भी माननीय वित्त मंत्री जी ने की है, वह भी स्वागत योग्य है और मैं उन्हें इसके लिए धन्यवाद देता हूं। इस बजट के द्वारा हमने इस देश के लोगों को और देश के बाहर के लोगों को यह संदेश दिया है कि भारत में निवेश की गारंटी है और भारत में निवेश हो सकता है। इसी तरह से विदेशी पैसे को भारत में आमंत्रित करने के लिए हमने दरवाजे खोले हैं। वह दरवाजे अगर पहले खोल दिए गये होते और उस ढंग से खोल दिए गए होते जैसे अब खोले हैं तो भारत की अर्थव्यवस्था सम्ृाद्ध और काफी मजबूत होती। नाभकीय परीक्षण के बारे में कहा गया कि उसकी चर्चा बजट में नहीं की गयी। उस समय भी वित्त मंत्री ने कहा था कि नाभकीय परीक्षण का कोई प्रभाव हमारे बजट पर पड़ने वाला नहीं है और वह बात आज ठीक दिखाई दे रही है। अमरीका प्रतिबंध लगाने की बात करता था और जो देश में लोग प्रतिबंध लगने की बात करते थे, वह बात भी पीछे छूट गयी। माननीय वित्त मंत्री की बात सही साबित हो रही है। मैं निवेदन करना चाहता हूं कि वित्त मंत्री ने इस बजट के द्वारा देश की सम्ृाद्धि के लिए जो कदम उठाए हैं, वे सर्वदा अभिनन्दनीय हैं। इसके लिए मैं वित्त मंत्री का अभिनन्दन करते हुए कहना चाहूंगा कि यह देश में अपनी प्रकार का पहला बजट है जिस में आधारभूत ढ़ांचे को मजबूत करने के लिए, साधनों को मजबूत करने के लिए सकारात्मक कदम उठाए गए हैं।

">SHRI R.S. GAVAI : Mr. Chairman Sir, I will be very brief. I will give my humble suggestions as far as the logic of the Budget is concerned.

Deficit Budget is always detrimental and dangerous to the last consumer of the country. Indirect taxation should be discouraged. It is also detrimental to the last consumer of the nation.

I have gone through the Budget and came to know that one-third of the amount of the total Budget outlay is under non-plan. As a matter of fact, there should be some ratio between non-plan and plan outlay. As far as possible, non-plan expenditure should not exceed 25 per cent of the total Budget. But it is rather contrary. Why I am saying this is because in non-plan expenditure, there is scope for discrimination and corruption also.

Of course, I have earlier mentioned that the Budget is silent on the impact of the sanctions till today. I would like to know from the hon. Finance Minister, what will be the impact of the sanctions imposed by America and other countries. It should be brought to the notice of the people at large.

My worry is that the present Budget is demolishing the public sector and encouraging the private sector. The impact of the Budget on the weaker sections, particularly on the Scheduled Castes and Scheduled Tribes, would be that they would be deprived of their legitimate right of reservations in jobs in the private sector. There are a number of complaints that discrimination is being observed by the private sector with regard to the reservations for Scheduled Castes and Scheduled Tribes. Therefore, I urge upon the Prime Minister to take cognisance of it and provide certain apparatus by which they should follow the policy of the Government because Government is giving so many sops and aid to the private sector like water, electricity, etc. They are bound to follow the line and policy of the Government.

I would now take up Special Component Plan and the Tribal Sub-Plan. The Special Component Plan is dead for the individual beneficiaries and Department-wise to the persons belonging to the Scheduled Caste, so also the Tribal Sub-Plan which deals with the tribal population. I am very sorry to bring to the notice of the Finance Minister that the outlay provided to Special Component Plan and Tribal Sub Plan is not in proportion to the total Budget outlay.

Sir, the cut in the outlay to the welfare schemes under the Ministry of Welfare is very significant. If we go in detail, you will understand that we are going in a reverse direction in safeguarding the interests of the Scheduled Castes and the Scheduled Tribes.

Sir, I want to bring to your notice that the chief architect of the Indian Constitution, Dr. Baba Saheb Ambedkar had brought out the Overseas Scholarship Scheme in 1945, that is during the British regime. This Scheme enables the intelligent boys from the weaker sections to go abroad. Now, this Scheme had been kept in cold storage, so also the case with regard to the Government of India's Scholarship Scheme. As far as the philosophy of Baba Saheb Ambedkar is concerned, it is not scholarship but it is subsistence allowance. Since the last three or four years, the scholarships given to the boys of these sections are not keeping with the cost of living index. I urge upon the hon. Finance Minister to look into this matter also.

It is incumbent on the part of the Government to submit the Annual Report of the Scheduled Castes and Scheduled Tribes Commissioner on the floor of the House so that the hon. Members of the House could know as to what is the exact position of the Scheduled Castes and Scheduled Tribes. Why are these Reports not discussed on the floor of the House?

MR. CHAIRMAN : Please conclude now.

SHRI R.S. GAVAI :I will conclude within a minute.

As I have earlier mentioned, since Independence, the food processing industries are brought under the purview of taxes. Sweets, masala and fees of Rs. 1,000/- for slaughter houses are related to the poor persons. So, taxes on these things should be withdrawn. Thank you.

">SHRI TAPAN SIKDAR (DUMDUM): Mr. Chairman, Sir, as the number of hon. Members who are present here has been reduced, my speech also will be reduced significantly.

MR. CHAIRMAN :Please be brief.

SHRI TAPAN SIKDAR :Sir, the Budget presented by the hon. Finance Minister, Shri Yashwant Sinha is a very significant one. As I said the other day, it is a `Golden Budget' in the Golden Jubilee Year of our Independence.

I am also happy that the `Dream Budget' presented by the previous Government did not serve any good for the country. I am also happy that our Finance Minister is not a `dream master'.

This Budget has increased the Plan outlay by Rs. 2,400 crore, which is 35 per cent more than the previous year. This Budget has also increased the agricultural sector outlay by 58 per cent. So, it is also significant. So, the rural and the agricultural sectors will help the Gram garibs and kisans more. The decision taken by the hon. Finance Minister yesterday would also create so many job opportunities.

The stock market is the barometer of the economy.

In that perspective, I think, this Budget will help the development of Indian economy, employment opportunities, foreign trade and uplift of the poor, especially the rural people. That is why, I support this Budget. Thank you.

">SHRI P. CHIDAMBARAM (SIVAGANGA): Mr. Chairman, Sir, I wish to intervene very briefly on the Finance Bill. I have spoken extensively on the Budget and I apologized to the Finance Minister that I would not be present for his reply because of a personal engagement in my family; and he graciously conceded my request. I have read his speech. He reserved his reply on many points to the Finance Bill. Then, again yesterday, I found that he has deferred many of the responses to the reply to the Finance Bill which leaves us in a state of wonder why the Government is taking so much time to make up its mind. After all, these are issues which have been debated extensively during the discussion on the Budget. And the Government has had a little over three or four weeks to make up its mind on these issues. In fact, if he had come forward and announced some bold decisions, although it may involve reversal of his own proposals, certainly we could have used this opportunity to congratulate him for responding to some of the concerns expressed in this House as well as outside.

Be that as it may, Sir, I wish to briefly highlight some concerns about the Finance Bill and I sincerely hope that, as he said yesterday they were receiving his keen attention, the suggestions made today, will also receive his keen attention and, tomorrow, he will come back to this House and respond positively to the concerns expressed.

Firstly, I wish to draw attention to a very illuminating report presented by the Standing Committee on Finance, that is, the `Third Report'. I want to draw attention, in particular, to three aspects. Firstly, let me draw your attention to the comment on the fiscal deficit. Fiscal deficit is not a partisan issue. It is not that Shri Yashwant Sinha invented the fiscal deficit, nor did he inherit it. Fiscal deficit is something that occurs year after year because of policies that we have followed in this country for many years. The account of the Government is closed on the 31st of March every year. So, in a way, you start on a clean slate except, of course, the interest burden. What do we find when we start on a clean slate? We find that the entire plan expenditure in this country for many years has been funded by borrowing. That means what you raise by way of taxation or other receipts goes into non-plan expenditure. I am not one of those who believe that all plan expenditure is good or all non-plan expenditure is bad but going by conventional classification, the plan expenditure must have priority over non-plan expenditure. The result of policies that we have followed for many years, going way beyond the period of Dr. Manmohan Singh, is that we finance our plan through borrowings. If we look at revenue and capital, almost 40 per cent of revenue expenditure is financed through borrowings. This is not good. This is not good whoever is in power. This is not good whether the Congress is in power or the BJP is in power or any other combination of parties is in power. We must put an end to this. Why does the fiscal deficit burden mount year after year? The main culprits are two. Firstly, there is the problem of interest burden. Secondly, we have no control over expenditure.

l7.00 hrs. We believe and in a way I think my friend the Finance Minister may have contributed to the strengthening of this erroneous thinking that expenditure is good, that if Government spends, it will bring benefits overnight. Therefore, I would urge the Finance Minister, before he loses all control over fiscal instruments, to rein in the fiscal deficit, to begin a process of reining in the fiscal deficit by addressing the issue of expenditure and addressing the issue of interest rate. On interest rate, I am afraid, despite brave words on the part of the Government, interest rates are firming up.

I sincerely wish the Government well that it will be able to overcome the sanctions. It is nobody's case that anyone in the world has a right to impose sanctions upon us. Certainly, the United States must be the last country with any moral authority to impose sanctions upon India or any other developing country. But, sanctions are a fact of life. It is good to have the Finance Minister stand up here and abroad saying, "These sanctions will not hurt us." Anyone in that office must say that.

We are not talking about the direct cost of sanctions. We are talking about the indirect cost of sanctions, something which I think Shri Yashwant Sinha and Shri Jethmalani will understand. There is an indirect cost of sanctions. When Moody's downgrades us, or any other rating agency downgrades, when the world perecives South-Asia as a theatre of confeict, where there are choices of distinction of foreign investment to go, if money must come to India, it will come at a higher cost. Already, I am told that the spread on external commercial borrowings has widened almost 450 basic points. One of our companies which used to borrow at about three to four per cent above LIBORD, I am told is now borrowing at something like seven to eight per cent over LIBORD. I say that the Finance Minister has to find ways and means to address the question of how to save interest on rates. For the first time in 1997-98 the overall interest rate burden of the Government of India came down marginally, from a little over l3 per cent to a little over l2 per cent.

The cost of Government borrowings is going up, the cost of private sector borrowings is going up, the cost of public sector borrowing is also going up. It means that the burden of this Government -- I will assume it will remain in office for five years -- goes up and the expenditure next year will go up very heavily. Therefore, the interest rates have to be brought down.

The other point is expenditure control. On this also the Third Report has a very illuminating comment. I want the Finance Minister to look at it. It refers to the Expenditure Management and Reforms Commission which I had promised as Finance Minister but which I could not implement. The reasons are obvious. I wanted it to be a blue ribbon commission led by a leader of the Opposition. I wanted all political parties to be on that Commission. Expenditure control, down-sizing or right-sizing Government, making the Government more efficient, controlling unproductive non-revenue expenditure, particularly what goes under the name of administration and services must be brought down drastically.

I appealed from that side to the gentlemen and ladies who occupied the seats this side. But I did not get a response. I do not wish to take names.

But here is an opportunity now. The Congress Party is committed to expenditure control and management. So said Dr. Manmohan Singh. The United Front Government was committed to expenditure control and management. Now that he is in office, this is the time for him to respond to the Third Report of the Committee and constitute an Expenditure Management Commission so that expenditure control will become the first priority with Parliament and with Government.

The third aspect of the Third Report which I wish to draw attention to is about the Assets Reconstruction Company which the Finance Minister proposed. Quite unsurprisingly, the Standing Committee has come to the right conclusion, "Go slow" about the Assets Reconstruction Company. The Committee has come to that conclusion.

This is an old idea of the Narasimhan Committee which was rejected, time and again, by the Ministry of Finance. There is no harm in reviving that idea. There is no harm in examining that idea again. But if you are convinced that it is good, go ahead with it. However, we are not convinced that it is good. It is a bad idea. It will encourage bankers to become poor lenders. It will encourage bankers to be sloppy in their job and that will spin off all these so-called non-performing assets to the Assets Reconstruction Company, which, as the Committee pointed out, will be managed by the same bank officers. What will you get out of it? The way to go about it is to look at the incremental N.P.A. after Basle norms were introduced as compared to the old N.P.A. You will find that the incremental N.P.A., after the Basle norms were introduced, are much smaller, in the region of about four or five per cent. It is the pre-existing N.P.A. before Basle norms were introduced which adds to the total N.P.A. picture of about 17 or 18 per cent. We must attack old loans, the loans that were advanced earlier and remained non-performing. The answer is not Assets Reconstruction Company.

Having drawn attention to these vital aspects, to recapitulate firstly the fiscal deficit particularly interest rates, secondly on expenditure management and thirdly on Assets Reconstruction Company, let me quickly appeal to the hon. Minister of Finance to pay attention to some other concerns.

Firstly, I have already in Question Hour raised my concern about Section 10 (23)(G). I find that while introducing the Bill yesterday, you said that you are paying keen attention to that subject. I wish that you will stand up and say quickly that it was an error, it was perhaps a drafting error or error in conceptualisation. But it was an error to try to amend Section 10(23)(G). Our infrastructure capital companies will be greatly affected. I will request you to graciously and gracefully withdraw that amendment that you proposed to Section 10(23)(G).

Secondly I will come to Science and Technology. Again, I will not lay the blame at your door. It is quite possible that it had escaped your attention. For many years, we have been giving hundred per cent tax concession to laboratories set up by companies for Research and Development, particularly pharmaceutical companies. For about two to three years, industry represented that they must get an additional incentive to invest in Research and Development; that you must go back to the situation prevailing some years ago where you gave a weighted deduction of 125 per cent. In the last year's Budget, we did give 125 per cent. Then, we set up groups to work out the modalities in the Department of Science and Technology. Dr. Mashelkar was involved, Dr. Ashok Parthsarathy was involved, and the industry was involved. Finally, the Government issued a notification in March, 1998 because the provision would come into force in the assessment year 1998-99, beginning on 1st of April, 1998. Now, what has the Ministry of Finance done? It notified in March, 1998 that it will give a weighted deduction of 125 per cent to indigenous Research and Development by Indian companies willing to invest money in Research and Development. Then, comes the Budget on the 1st of June which takes it away and says: "No, we only give you hundred per cent." Now, what happened between March and June is that the Ministry of Finance has done a volte-face. I can see no logic in it. I am sure, cutting across party lines, all Members will support a weighted deduction to Research and Development by Indian companies so that indigenous Research and Development will be encouraged and more money will be invested in indigenous Research and Development. I would urge the hon. Minister to kindly withdraw the amendment that he proposed to that particular section.

Finally, I will come to the point regarding four per cent SAD. I do not know why you named it as SAD. The day since it was named that way, it has had a very sad history. I confess that last year we had to introduce a three per cent special customs duty. But that was as part of basic duty because we had to meet a huge bill of the Pay Commission. It may have been the right thing to do or wrong thing to do. If I were doing it all over again, I would not do it. I say that I would not do it. At least I had a sunset clause. There was a sun-set clause that three per cent will lapse on the 31st March, 1999. Now, what you have introduced is not an addition to the basic customs duty. It is top of all duties. We calculated and showed you that eight per cent really worked out to twelve or thirteen per cent. You were good enough to roll it back to four per cent. But even four per cent works out to six or seven per cent. It applies to capital goods. Capital goods manufacturers in this country have protested.

And despite the early figures, the new figures put out by the Department of Statistics show that the capital goods industry did go up in the first three quarters of the last financial year. The decline started only in the fourth quarter, perhaps some time after elections were announced and instability became entrenched. I would urge you to boldly scrap this four per cent duty. That is the right thing that you will do. But even if you cannot bring yourself to scrap the four per cent duty, then take it away on capital goods. Just imagine the cost of a refinery, a power plant or a fertiliser plant. Imagine that a plant is coming into India which is internationally priced. In any other country if it goes in at zero duty - the initial cost, the initial capital outlay is only the cost of the machinery and other developmental work - in India, you start on day one by a 25 per cent customs duty or a 30 per cent customs duty. The cost goes up by thirty per cent. All your pricing is based upon that. How can the Indian product ever be competitive to the world product? That is why Dr. Manmohan Singh introduced zero duty for fertiliser. I introduced zero duty for refinery under certain conditions. I am glad that despite industry's demonstrations, you have not gone back on that. I am glad that you have stood firm and said: No, let refinery and fertiliser capital goods come at zero duty. I am not saying you extend it to other sectors. If they deserve, you must extend it to other sectors. But this four per cent duty may not apply to fertiliser and refinery. The same logic applies to all industries which import capital goods. As long as the Indian industry is import-dependent, in the sense that even the export industry is based upon a high import content, any addition to customs duty makes our exports uncompetitive. That is why, the classic economists will say that import duties are a tax on exports. It makes the domestic market more profitable, but it makes the export market unprofitable and uncompetitive, and the exports will decline. I would urge you, Mr. Finance Minister, bite the bullet. You have, after all, rolled back the increase in fertiliser prices, you have rolled back the unintended increase in petroleum prices. So, to roll back something which is clearly wrong is not an act of defeatism or is not an act of humiliation. I think it means that you have the statesmanship and the courage to recognise that something done may not have been the correct thing and you will roll it back. I would urge you to bring to bear on your task the courage and the statesmanship required to roll back this four per cent.

THE MINISTER OF FINANCE (SHRI YASHWANT SINHA): You were not present in the House when I was piloting the Bill. On your five per cent thing, I had announced in this House that I shall allow the sunset clause to become effective on 31st March, 1999 and your five per cent shall stand eliminated on that day.

SHRI P. CHIDAMBARAM : That I noticed. That sunset clause was already there in the Finance Act. Unless the Parliament agrees to amend the sunset clause, it will go away on 31.3.1999. I am saying that your four per cent should be rolled back now. But if you require the four per cent this year for revenue purposes, let it also be subjected to the same sunset clause. Let your four per cent also go on 31.3.1999. Unfortunately, your four per cent is a permanent tax. You have put it as a permanent tax on the Statute Book today. You had it as eight per cent, you have got it as four per cent. I am not convinced about the logic of four per cent for this year. I said so when I spoke on the Budget. I said this is inflationary and this will make the Indian industry uncompetitive. You were good enough to roll it back by four per cent. But I would say, roll back the remaining four per cent also. But if for revenue reasons - we are in the month of July now - if you are not able to roll it back across the board, roll it back at least for selective sectors, for capital goods. I give you a third option. If you are unable to roll it back even for capital goods, at least roll it back so that it stops on 31.3.1999, so that this mistake is not perpetuated beyond 31.3.1999.

Finally, a word on inflation. Again, the Treasury Benches were very kind and indulgent to listen to me with rapt attention, and I appreciate that. Please bear with me for another minute and I will conclude. Inflation again is not a partisan issue. All of us are committed to fighting inflation. All of us are committed to keeping inflation below five per cent. In fact, the Finance Minister is on record speaking through his Economic Survey that inflation must be controlled to something like four per cent. What has happened is not what we are wishing will happen. We are not wishing that inflation should rise in this country so that we can stand up and taunt you in Parliament. Inflation hurts the poor people. Inflation hurts the fixed income people. Inflation has already touched 7.5 per cent.

With a certain amount of humility, I believe that one of the greatest, one of the best achievements of the United Front Government and the last year of the Congress Government was control of inflation. We targeted inflation. Inflation which used to average about eight or nine per cent and touched even ten per cent in 1992-93 and 1993-94, Dr. Manmohan Singh brought it down to an average of about 7.5 per cent. In the two years of the UF Government, we brought it down to an average of 6.5 per cent in the first year, and then to an average of five per cent.

I am not saying that there is a magic wand to control inflation. But I would request him not to lose over monetary instruments and fiscal instruments. He seems to have lost control over monetary instruments. But when he has control over fiscal instruments, he is using the fiscal instruments to impose taxes which are inflationary. Excise duty is by definition inflationary. Customs duty in a country where industry is dependent upon imports is inflationary. I once again implore upon him to look at the nature of his taxes and do not be carried away by what economists say.

Sir, there is a famous Newton's Law of physics. There is also a Newton's Law of economics. For every economist, there is an equal and opposite economist. So, he should not be carried away by what economists will tell him that the Laffer Curve will not work. The Laffer Curve will work. In fact, he will reap the benefit of the Laffer Curve. The Laffer Curve had worked last year on corporation tax. It did not work to the extent of Rs. 3,000 crore on personal income tax because of the slightly diversionary effect of VDIS. The Laffer Curve will work and he has a bonanza waiting for him under his Samadhan Scheme, if he can formulate the scheme, and implement it with vigour. It is not as though the revenues will not come. But he may please take a second look at inflationary taxes. I am not going to mention taxes. In my speech on Budget, I said sewing machines, tractors, tyres for off-the-road vehicles and sweet meats. What is the need to impose taxes on all these things? Please look at that list.

It is not as though Dr. Manmohan Singh or I put zero duty by over-sight. Zero duty is put there for many of the items because they are items of mass consumption and they should be available to the people of India at low prices. Zero duty has been put there on many other products because we must encourage people to use those products. The best example is the tyres for bullock-carts and other carts.

Now it is very tempting to say let us impose eight per cent duty and collect money. That is inflationary. It will discourage people from using those products. Products will not be available to people at low prices. I am not going to list them. I would request him to please look at them. He is raising over Rs. 9,000 crore. The people of India pay to the Central Government alone Rs. 1,70,000 crore by way of taxes. Why does he want to add another Rs. 9,000 crore? I know that it is too late in the day for me to persuade him to withdraw all Rs. 9,000 crore levy. But he may please look at some of his taxes, some of his excise duties, some of his customs duties, particularly the four per cent, and roll them back.

Sir, inflation has already touched 7.41 per cent. This is a provisional figure. Our experience is that final figures are usually about 0.2 or 0.3 per cent above the provisional figures. So, it is quite possible, as I speak today, inflation has already touched eight per cent. That is only on the Wholesale Price Index. On the Consumer Price Index, it has already crossed ten per cent. As far as agricultural labour is concerned, inflation has perhaps already crossed ten per cent. I know that 150 days is too short a period for anyone to deliver the goods. We want him to deliver the goods. We may debate with him, we may argue with him, we may quarrel with him, but after all, it is the Government of India and the economy of India, the people of India who have to eventually succeed and triumph. So, we are as concerned as they are and when we say this, we say this in a spirit of trying to help him. I sincerely mean it when I say that we want to be helpful to him. I would request him to please target inflation. As I said, when inflation crosses eight per cent, he will find that there are a few friends even on that side for him. As inflation crosses ten per cent, they will be demanding the scalp of the Finance Minister. I would request the Finance Minister not to allow himself to be carried away by the advice - maybe well-meaning advice but wrong advice - which will only stoke inflation. Inflation control, Mr. Finance Minister, must be the prime target of the Government. I would request the Finance Minister not to lose control over monetary instruments and, not to use fiscal instruments in a manner that will stoke inflation.

I would urge him to respond to these concerns. When he comes back tomorrow, I hope that he would have responded to these and other concerns that were expressed by us so that we can support his Finance Bill.

">*SHRI V.K. CHINNASAMY (GOBICHETTIPALAYAM) : Hon'ble Chairman, I would like to speak in Tamil, my mother tongue. At the outset I would like to thank our beloved leader Dr. Puratchi Thalaivi, the General Secretary of All India Anna Dravida Munnetra Kazhagam who has the former Chief Minister of Tamil Nadu and who will be the Chief Minister of Tamil Nadu in future. Our leader has enabled me to represent the people of Gobichettipalayam constiuency in Tamil Nadu. I express my deep gratitude again.

I would like to than the electorate of my Gobichettipalayam Parliamentary Constituency for electing me with a margin of 1,14,626 votes after my being introduced in the fray as an AIADMK cabdidate by our leader Puratchi Thalaivi who lived in our hearts. I also thank the volunteers and friends of my party who ceaselessly endeavoured to make my victory possible.

While supporting the Finance Bill moved by the Hon'ble Finance Minister, I would like to express my views placing forthe certain suggestions and demands pertaining to my electorate. I listened to Mr. Chidambaram, Former Finance Minister and Hon'ble Member of this present Lok Sabha speaking just before me. He analysed the Bill in detail and came with several suggestions. As far as I am concerned I would like to assure Mr. Chidambaram who comes form Tamil Nadu that our Finance Minister from this alliance Government will not lag behind in any respect. I may also assure him that the functioning of the Finance Ministry will not be wanting is any way now. Let me also point out that our Hon'ble Prime Minister Shri A.B. Vajpayee has made a right choice in nominating an efficient Finance Minister.

While presenting the Budget, our Finance Minister announced a hike in petrol price. But later on, consider the demands form the Hon'ble Member of this House he reduced the increase in petroleum prices. I think it is duty to thank him for that gesture.

_____________________________________________________________________________ * Translation of the speech originally delivered in Tamil I would like to point out that about 75% of the Members of this House are from agricultural families. When the Finance Minister proposed to increase the urea price by one rupee per killo, members from various parties drew the attention of the Finance Minister. He immediately brought it down by fifty paise at the first instance and subsequently he had withdrawn it fully proving a point that we are responsive.

In India about 70% of our children are not getting nutritious meals. At the same time, about 40% of our population is not able to buy food to sustain them and enable them to work and earn their livehood.

I am duty bound to impress upon this Government at this juncture, to go in for increasing the foodgrains production to alleviate poverty related problems like hunger and sickness. Poverty and hunger are not mere economic problems. It is treated as a political problem too. So it is needless to emphasoiose the urgency to en=volve measuress to eradicate poverty from this country. The new Union Government led by BJP and its alliance partners share a common objective to put an end to the problem of hunger. The entire responsibility is vested with the Finance Minister.

New agricultural policy and new food policy with a thrust on increased production must be evolved soon. This in my opinion would require nationalisation of rivers in India especially the inter-state rivers. We have enough of land and water resources. So at this point of time when we are facing imminent economic sanctions against us by countries like America, we need not lose heart.

Let me recall a saying by our founder leader Puratchi Thalaivar late Dr. MGR who has a very popular film star of his times and a three-term Chief Minister of Tamil Nadu for eleven years. In a movie titled Vivasayi (Farmer), I hope Hon'ble Member Shri Chidambaram might have seen it, he made us to think saying that, "In thiscountry there is no dearth of resouces, they are aplenty. So we need not go for alms to other countries."

So I would like to draw the attention of this Government through the Finance Minister. Cross of acres of land are there lying as dry lands and waste lands without adequate water and irrigation facilities. If we could take effective and viable measures we can convert these lands to be cultivable ones. Thereby we would be able to augment foodgrains production and we would be able to export food supplies to other countries. So I would emphasize here the need to go for Ganga-Cauvery link project.

It is fifty years since we won freedom. So many parties like Congress party rules the country all along. They might have left several things unfulfilled. So I would like to impress upon the Prime Minister that it is not important as to how long we rules this India. It is all the more important as to how long we ruled this India. It is all the more important to prove that how have we taken up and implemented projects and scheme that would have lasting impact. Puratchi Thalaivar MGR as a visionary functioned with a perspective.

Yesterday during the Kamaraj statue unvelling ceremony, our Prime Minister lauded late Kamaraj's Midday Meal scheme. But it is only Dr MGR, the erstwhile Chief Minister of Tamil Nadu who proved that such a noon-day nutritious meal scheme can last for long that too feeding children upto plus two. He showed a way to the whole of India. So I request our Orime Minister to implement this Midday Meal scheme throughout the country taking cue from the one and the only Chief Minister who introduced it in Tamil Nadu. I also request the Prime Minister to seriously consider implementing the Ganga-Cauvery project. Even if it is to cost thousands of crores of rupees this BJP Government must find ways and means to take up this project. I would be happy if survey work for this project is taken up this year. I also look forward to your announcement in the ensuing session that funds have been earmarked for this purpose.

Annor, Avinasi, Nambiyoor, Gobi,Perundurai, Bhavani Sagar, Karamadal, Uthukull, Chennimalai are the ten panchayat unions in CVolmbatore and Erode districts that have vast dry land due to dry spells and deep water table. A scheme was evolved to replenish the water in the irrigational tanks and water sheds. This Athikkadauv scheme was evolved as a major Drinking water scheme. In 1995, when our Puratchi Thalaivi was Chief Minister of Tamil Nadu, ssurvey was carried out. Public works Department of the Government of Tamil Nadu conducted a survey and submitted its recommendations. it was found to be a viable scheme. Government of Tamil Nadu also took up the project for consideration. This Rs. 135 crore project would benefit about 20 lacs of people in these areas. it would provide drinking water to their porched throats. This schemed would solve the drinking water problem faced by these 20 lacs of population. Water has to be drawn through canals from Athikhadavu. The required fund for this viable scheme at a cost of Rs. 135 crore needs to be allocated by the Governments both in the State and at the Centre. I request the Union Government to provide its share of 50% at the earliest to complete this project before any cost overrun could ground this project I request the Finance Minister to look into this.

Let me bring to the notice of the Government the stopping of certain trains running via Erode. The business community from Erode, Tiruppur, Salem, Coimbatore are greatly affect by this. Turmeric, sugar, oil, handloom products etc. transported to other States especially to the Northern States are facing transport problem. Four to five trains have been stopped on this route while rescheduling their routes. These goods cannot be moved as easily as they used to be done due to inadequate rail traffic. So I would like to impress upon this Government especially the Railway Ministry to press into operation immediately certain other train services to enable the movement of these essential goods.

MR. CHAIRMAN : Please conclude.

AN HON MEMBER : Sir, please allow him to continue. It is his maiden speech.

SHRI V.K. CHINNASAMY: The Handloom Weavers' Association of Erode have submitted a memorandum to Hon'ble Prime Minister of India.

MR. CHAIRMAN : Let him conclude in one minute.

SHRI V.K. CHINNASAMY: In and around towns like Uthukuli, Chennimalai and Tiruppur, the places in and around my constituency production of ghee from home made butter is carried on like cottage industry. Every household in every village there around the region participates in this village level cottage industry. Excise duty has been levied on ghee and butter. This may be withdrawn. I request the Finance Minister to waive the excise duty levied on turmeric, pepper and tiles too.

Handloom weavers were getting 20% rebate for the past 15 years right from the tenure of late Dr. Puratchi Thalaivar MGR. For the past two years the handloom weavers face several hardships. It is due to the withdrawal of this 20% rebate scheme. The DMK Government in Tamil Nadu has withdrawn the rebate. The plight of the handloom weavers have gone pitiable because of stagnation in the sale of these handloom goods. I urge upon the Union Government to intervene and ensure that both the Central and State Government provide cushion to boost up the sales of handloom goods offering rebate throughout the year. It would be better the Union Government itself come forward to procure all these handloom goods and dispose them off either in the domestic market or through exports to foreign countries.

... (Interruptions)

MR. CHAIRMAN : One minute is over. Shri Chinnasamy, please take your seat. You have spoken for 15 minutes. Please take your seat. Now, Shri N.K. Premchandran to speak.

... (Interruptions)

SHRI V.K. CHINNASAMY (GOBICHETTIPALAYAM): Please give me one minute.

Now there is a rumour that centre is oing to ban tobacco cultivation in Tamil Nadu. This has created a panic giving rise to crisis sales. Farmers are greately agitated and plan to give up tobacco cultivation. Traders also pay them less price. So I request the Union Government not to ban tobacco cultivation in Tamil Nadu as it would affect hundred of agriculturists and families which rely on them.

MR. CHAIRMAN: You have taken 15 minutes. You are the second speaker of your Party.

SHRI V.K. CHINNASAMY (GOBICHETTIPALAYAM): Please give me one minute.

... (Interruptions)

MR. CHAIRMAN: Nothing will go on record, except Shri Premchandran's speech. Shri Chinnasamy, please take your seat now.

(Interruptions)* __________________________________________________________________________ * Not Recorded SHRI BRAJA KISHORE TRIPATHY (PURI): Sir, I am on a point of order and it is regarding the strike by postal employees. We came to know from outside that the strike has been called off, but the Government has not intimated the same to this House. So, will you please instruct the Government to intimate the real position to this House? We would like to know whether it has been really called off or not.

MR. CHAIRMAN: I do not know whether the Finance Minister is in a position to inform this House.

SHRI YASHWANT SINHA: Sir, I will send a word to my colleague.

MR. CHAIRMAN: It should be conveyed to the Minister of Communications that she should inform the House about the latest position in regard to the postal employees' strike.

... (Interruptions)

SHRI V.K. CHINNASAMY : Sir, please give me one minute.

MR. CHAIRMAN: You can pass on your papers to the Finance Minister. I have already called Shri Premchandran.

... (Interruptions)

MR. CHAIRMAN: Nothing will go on record, except Shri Premchandran's speech.

(Interruptions)* ___________________________________________________________________________ * Not Recorded ">SHRI N.K. PREMCHANDRAN (QUILON): Thank you, Mr. Chairman, Sir, for giving me the opportunity to express my views in regard to this Finance (No. 2) Bill, 1998.

I rise to oppose this Bill because the general character of this Bill is favouring or benefiting the multinational companies or corporates and the rich people of the society. The concept of this Budget has been extensively discussed. I would like to say one thing on this Finance Bill also. Now-a-days, it has become a practice, when we formulate the Budget proposals or when we formulate the tax proposals, to give much importance to the rich class in the society. We are ignoring the toiling masses, the working class, the peasants and the common mass of this country. This Finance Bill is also moving in the same direction benefiting the rich class or the haves in the society.

We do agree with the Finance Minister that the economic growth of the country is the main factor in determining the welfare measures. But the economic growth should grow with equity.

MR. CHAIRMAN: Shri Premchandran, just a minute. The Parliamentary Affairs Minister is here. श्री मदन लाल खुराना: महोदय, पोस्टल स्ट्राइक के बारे में मंत्री महोदया राज्य सभा में साढ़े पांच बजे स्टेटमेंट दे रही हैं, कयोंकि वह सदन साढ़े पांच बजे एडजार्न हो जाता हैं। उसके बाद मैं उनसे निवेदन करूंगा कि वे यहां आ जायें।

SHRI P.C. CHACKO (IDUKKI): The whole country is undergoing through this agony. Kindly tell us whether the strike is over or not. We do not want any speeches. श्री मदन लाल खुराना: वे स्वयं यहां आकर बतायेंगी।

MR. CHAIRMAN: She is going to make a statement in the Rajya Sabha. श्री मदन लाल खुराना: वे बतायेंगी। साढ़े पांच बजे वहां स्टेंटमेंट देकर तुरन्त यहां आ जायेंगी।

SHRI N.K. PREMCHANDRAN (QUILON): Sir, the Preamble of our Constitution as well as the Directive Principles of State Policy envisage for a welfare State and economic justice. So, one of the main questions to be considered as far as this Finance Bill is concerned is whether the tax proposals would lead to economic justice or not. My answer to that is `no' because the main lacuna in the tax structure of our country is that we are not able to collect the taxes in due course. That is the main thing which I would like to highlight. There is a lack of proper and effective mechanism to collect the taxes. It is astonishing to note that the total present arrears, both under direct and indirect taxes, are more than Rs. 50,000 crore. That itself is sufficient to overcome most of the defects that our economy is facing. There is also a high asymmetry existing in between the direct and indirect taxes collection. What is the percentage of contribution of dirct and indirect taxes from 1992-93 to 1997-98 in the gross tax revenue? It is 36 per cent in the case of direct taxes and 64 per cent in the case of indirect taxes, that is, by way of customs duty and excise duty. It indicates that we are relying or depending much upon the indirect taxes. That is why, 64 per cent of the total tax revenue is from the indirect taxes and only 36 per cent is from the direct taxes. So, I would like to say that it is undesirable and it is not good for a country where 40 per cent of the people are living below the poverty line. It will place heavy burden upon the common mass of the country and it will also result in a negative economic growth also. So, Sir, I suggest that they should have a proper and effective enforcement mechanism to collect the taxes.

As far as the concessions, benefits and extensions are concerned, I have already said that we are giving it to the multinational companies, corporates and the rich people of the society. Last year, the former Finance Minister, in the last Budget, had introduced a new scheme, that is, Voluntary Disclosure of Income Scheme. We do not know who have deposited and how much amount. The Parliament, the supreme august body, is not aware of who deposited how much amount. It has not been disclosed; that may be one of the conditions of the Scheme. But it is learnt that so many politicians are also involved. I have heard from some source that Rs. 170 crore have been brought to the Income Tax Commissioner's Office in two trucks and they were not able to count it even. I would say that we are indirectly encouraging black money.

We are indirectly encouraging tax evasion also. So, I would like to know from the hon. Finance Minister whether it is possible to disclose the name of the persons who have submitted the amount at least after closing this. Now there is a new scheme, Kar Vivad Samadhan Scheme. A lot of concessions are going to be given from 31st March, 1998 by offering waiver of a part of tax arrears and also interest and providing immunity against prosecution and penalties. This kind of giving exemptions, concessions and benefits to tax evaders shall not be made a permanent practice, as in that case, tax evasion will be a continuous practice.

Now, I come to the excise duty structure. Almost all hon. Members have expressed their concern regarding 8 per cent duty on packaged tea and branded edibles and sweets which are putting much of a burden on the common man.

MR. CHAIRMAN : The hon. Member may conclude within one minute.

SHRI N.K. PREMCHANDRAN : I hope that the Finance Minister will withdraw the tax proposal which has already been made here.

I now come to the next proposal regarding 5 per cent excise duty on rubber coir mattress. It is purely an agro-based industrial product because 70 per cent of the coir mattress is from coconut fibre and 30 per cent is from rubber. Suppose 5 per cent excise duty is imposed upon it, the entire tyre industry will suffer. It is also against the policy of the Government. This Budget speech also is giving much thrust to the eco-friendly relationship. But why 5 per cent excise duty is being imposed? It cannot be legitimately explained. I would like to request the hon. Finance Minister to withdraw it because rubber tyre industry is competing with the polyurethene foams because polyurethene foams are made with raw materials which are totally imported. It will affect the indigenous industry and our economy will also be affected. There are 92 rubber based coir industries in total in India and 1,000 small-scale coconut fibre extraction units also. All these units will suffer. Five per cent excise duty upon the rubberised coir mattress may be withdrawn.

I would also like to say another thing. It is about the duty on caprolactam. The duty has been reduced from 30 per cent to 25 per cent. FACT is a major public sector unit in the State of Kerala. With this measure, it will suffer very much by way of reduction of the customs duty from 30 per cent to 25 per cent. It is also having a social commitment because food security of the country is mainly dependent on fertilizers. So, that suggestion may also be taken into consideration.

Now I come to the tapal tariff. The price of postal articles is going up. The price of Inland Letter has been increased from one rupee to Rs.1.50, so also, the price of postage cover has been increased from rupees two to rupees three. These are all affecting the common masses of the country because the common people, the poor people are depending on all these communication systems. The rich people in the society are having so many other most modern technological equipment. So, this issue also should be reviewed.

For the Road Development Fund also, the hon. Minister has increased the price of petrol by rupee one per litre. The Government is expected to be collecting Rs.790 crore out of the Road Development Fund scheme. I would like to say that we should develop infrastructure facilities by way of BOT scheme. I think the Government should not impose much duty on petrol which is causing a heavy burden on the common people.

I would welcome the hon. Finance Minister's proposal in regard to sports. The Finance Minister has announced the setting up of a National Sports Fund for the promotion of sports and games in the country. It is a very welcome suggestion. We were witnessing the finals of the World Cup Football Tournament. What is the position of India in the World Cup Football Tournament? Like the Atlanta Olympics, without Leander Paes, the medals tally of India would have been zero. He had got a bronze medal. Otherwise, India would have been a zero in the medals tally. So, we have to promote sports and games in our country for which a Fund has to be constituted. There should be proper administration and management of sports in the country. The Government of India should have a sports policy and on the basis of that, we can promote sports and games also.

Croatia which is having only forty lakhs of people have got the third place in the World Cup Football Tournament. But what is the position of India? I think the position of India in the World Cup Football Tournament is 106. That is the statistics which we have. So, I would welcome this suggestion of the hon. Minister. There should be proper administration and management of sports. I welcome the Government's intention of having a sports policy. All the taxes, the direct tax, the indirect tax, the service tax, tapal revenue, do constitute the Central resources.

MR. CHAIRMAN : Please conclude now.

SHRI N.K. PREMACHANDRAN : I am concluding. There are two things with respect to my State. I would like to say that there is no just and equitable allocation of Central resources among the States. For example, the per capita outlay allocation to Kerala is much below the national average. The per capita outlay allocation to Kerala is Rs. 1883 as against the national average of Rs. 2162...(Interruptions)

MR. CHAIRMAN: The Minister of Communications wants to make a statement. She wants to go to the Rajya Sabha after that.

SHRI N.K. PREMACHANDRAN :I am concluding. I will take just only one minute. Coming to my point, I would request that this deficiency should be rectified. It should be taken into consideration and it should be rectified.

Similarly, the Central sector investment in Kerala has come down from 3.24 per cent in 1975 to 1.8 per cent in the year 1995. I suggest that plan allocation and Central investments should be based on population, per capita income and unemployment.

The corporate income-tax has to be made a shareable revenue. The Tenth Finance Commission recommended and accepted it. I think he has also accepted it. I hope that without any further delay, he will come forth before the House with the proposal so that we can approve it also.

Finally, I would suggest one more thing. Just like that of the Sports Fund, I appeal to the hon. Finance Minister to constitute a Fund for the rehabilitation of the Gulf returnees. Yesterday, I got an answer from the hon. Prime Minister saying that 30 lakh Indians are working in the Gulf countries. That means that the Gulf countries are the main foreign exchange-earning sector to us. The Non-Resident Indians in the Gulf countries contribute a lot. Thirty thousand Malayalees have returned from the UAE. It amounts to a loss of foreign exchange of Rs.1000 crore. Thirty per cent of the foreign exchange earnings is from the Gulf countries. So, I suggest that a permanent rehabilitation fund and scheme has to be constituted so as to rehabilitate the Gulf returnees. It will also help for the welfare of these people.

With these words, I conclude. Thank you very much.

SHRI HANNAN MOLLAH (ULUBERIA): Sir, what happened to the postal strike? Has any settlement been reached or not? Where is the Minister?...(Interruptions)

MR. CHAIRMAN : She will be coming.

... (Interruptions)

MR. CHAIRMAN : Shri Chaman Lal Gupta to speak.

... (Interruptions)

SHRI HANNAN MOLLAH : The hon. Minister of Communications is here. We want to know about the latest position in respect of postal strike...(Interruptions)

MR. CHAIRMAN: Let him start now. She will come and make a statement. Please take your seats.

... (Interruptions)

SHRI YASHWANT SINHA: She has been called by the hon. Speaker. Please have some patience. She is coming back...(Interruptions)

SHRI HANNAN MOLLAH : What is the latest position about the postal strike?...(Interruptions)

MR. CHAIRMAN: Guptaji, please take your seat. Let the Minister of Communications make a statement.

"> श्री चमन लाल गुप्त (ऊधमपुर): सभापति जी, मैं बहुत कम समय लूंगा। मैं फाइनैन्स बिल के सपोर्ट में खड़ा हुआ हूं। पहली बार इस बजट में आवास, ग्रामीण विकास, शिक्षा, स्वास्थ्य, रोजगार एवं कल्याण के क्षेत्रों की तरफ ध्यान दिया गया है। जो क्षेत्र पहले निग्लैकिटड रहते थे, उनकी ओर ध्यान दिया गया है। पहली बार जमीन से जुड़ा बजट हमारे सामने आया है और उससे संबंधित टैकस प्रपोजल्स हैं। सभापति जी, मैं अपनी रियासत से ताल्लुक रखने वाले दो-तीन मुद्दे आपके ध्यान में लाना चाहता हूं। ऐसे बहुत सारे जिले हैं जिनको आपने बैकवर्ड डिस्टि्रकट डिकलेयर किया है। इसके अन्तर्गत दस साल के लिये उन जिलो को टैकस हॉलिडे मिलेगा। दुर्भाग्य से १९९३-९८ तक सारा क्षेत्र टैकस फ्री था। आप जानते हैं कि वहां पर किस तरह से इनसर्जैंसी और मलिटेंसी जारी है। मेरी जानकारी के अनुसार कश्मीर के किसी डिस्टि्रकट को बैकवर्ड डिकलेयर नहीं किया गया है। लदाख जैसे क्षेत्र को भी हालिडे टैकस की सीमा से बाहर रखा हुआ था। मेरा वित्त मंत्री से निवेदन है कि जिस तरह से पूवर्ोत्तर राज्यों को इनकम टैकस से मुकत किया हुआ है, उसी प्रकार से पूरे कश्मीर के बाकी जिलों को भी बैकवर्ड डिस्ट्रकट डिकलेयर करके टैकस हॉलिडे में इनकलूड करना चाहिये। दूसरी बात मैं यह कहना चाहता हूं कि जो स्माल स्केल इंडस्टि्रयल यूनिटस हैं, उनमें तीन करोड़ तक इनवैस्टमेंट माना जाता था लेकिन उसे अब एक करोड़ तक कर दिया गया है। श्री यशवंत सिन्हा: वह रिवाईज़ कर दिया गया है। श्री चमन लाल गुप्त : अखबारों में निकला है कि यह एक करोड़ माना जायेगा लेकिन लगातार कीमतों के बढ़ते रहने से वह रिडकशन कोई जरूरी नहीं है। इसलिये लमिट तीन करोड़ ही रखनी पड़ेगी। सभापति महोदय, हमारे यहां पर तारपीन ऑयल की बहुत सारी इंडस्ट्रीज़ हैं। जंगलात से पाईन ऑयल लिया जाता था और इस आधार पर वहां ४० इंडस्ट्रीज चलती हैं। देश के बाकी हिस्सों में ऐसी इंडस्ट्रीज की तादाद १५० है। यह दुर्भाग्य की बात है कि जिस तरह से जंगलों का नाश हुआ है, उसके बाद यह रॉ-मैटीरियल अपने देश में बहुत कम हो गया है। इस मैटीरियल को बाहर से मंगवाना पड़ रहा है परन्तु बाहर से मंगाने पर भी ८ परसेंट एकसाईज़ डयूटी लगी हुई है। इस एकसाइज़ डयूटी के चलते हम बाहर के देशों के साथ कम्पीट नहीं कर सकते। इस कारण ऐसी सारी इंडस्ट्रीज़ बंद हो रही हैं। इस पर विचार किया जाये। सभापति महोदय, मैं माननीय वित्त मंत्री से कहना चाहता हूं कि डेयरी फार्म, नमकीन और मिठाई आदि पर जो ८ प्रतिशत का टैकस लगाया है, वह किसी को दिखाई नहीं देता कयोंकि सब तरफ से मांग की जा रही है कि छोटे घर में बनाने वाले और खुद बनाकर बेचने वाले लोग हैं बड़ी इंडस्ट्री चलाने वाले नहीं हैं, इनको किसी विदेशी इंडस्ट्री से कम्पीट करके दिखाना ठीक नहीं है। इसलिये उन पर टैकस हटा लिया जाये। सभापति महोदय, मेरे निर्वाचन क्षेत्र में चेनाब नदी पर १५ हज़ार मेगावाट बिजली पैदा करने की क्षमता है परन्तु आज तक उस पर कोई प्राजैकट नहीं बन पाया है। इसका कारण यह है कि इस सैकटर की तरफ कोई ध्यान नहीं दिया जा रहा है। वहां पर दुलहस्ती में एक प्रोजैकट १९८३ में शुरु हुआ था, पिछली सरकार ने उसे चालू किया था लेकिन अब वह फिर से बंद हो रहा है। मेरा निवेदन है कि कम से कम थोड़ा बिजली की तरफ ध्यान दें। यदि इस तरफ कोशिश करेंगे तो हमारी रियासत आत्मनिर्भर हो सकती है। आपसे पैसा लेने की भी जरूरत नहीं पड़ेगी बशर्ते हमारे बिजली के प्रोजैकटस यहां से कलीयर कर दें और एन.एच.पी.सी. अपने हाथ में लेकर उन्हें डेवलेप करना शुरु कर दे। सभापति महोदय, एक बात यहां पर बार-बार कही गई है कि बहुत सारी ऐसी योजनाये हैं जिनके लिये पैसा केन्द्र सरकार देती है। इनमें जवाहर रोज़गार योजना प्रमुख है। यहां ह भी माननीय सदस्यों द्वारा यह कहा गया है कि इनमें कोई भी राज्य सरकार किसी तरह से एम.पी. को साथ जोड़ने के लिये तैयार नहीं है। आपने कहा कि इंस्ट्रकशन्स दे रहे हैं लेकिन चार महीने के बाद भी, मैं दावे के साथ कह सकता हूं कि स्टेट गवर्नमेंटस द्वारा इन योजनाओं को क़ियान्िवत करने के लिये एम.पी. को सहभागी नहीं बनाया गया है। मैं चाहूंगा कि आपके यहां से मैंडेटरी इंस्ट्रकशन्स जानी चाहिये कि जो पैसा इन योजनाओं के लिये केन्द्र सरकार द्वारा दिया जा रहा है वह तब तक खर्च नहीं होगा जब तक लोकल एम.पी. को उसके साथ नहीं जोड़ दिया जायेगा। अंत में, जो बात मैंने सुबह कही थी कि हमारे जम्मू कश्मीर में ५० हजार रुपये तक के कर्जे आपने माफ कर दिये हैं, विशेषकर जो व्यापारी है, उसका कर्जा माफ हो गया है। जो हमारा शिकारे वाला है, उसका कर्जा माफ़ हो गया है, छोटे दुकानदार का कर्जा माफ़ हो गया है परंतु दुर्भागा किसान ही ऐसा है कि जिसका कर्जा आपने माफ नहीं किया है। ५०,००० रुपये तक का एग्रीकल्चर लोन उसी पैकेज में आ जाए और वह भी माफ हो, यह मेरी प्रार्थना है। मुझे पूरा भरोसा है कि इन दो तीन मुद्दों पर मंत्री जी ध्यान देंगे और हमारी रियासत जिस तरह से इनसरजेन्सी से लड़ रही है, अच्छी तरह से वह लड़ सके, इसके लिए उनको तरजीह दें, ऐसा ही मुझे निवेदन करना है।

">SHRI P.C. CHACKO (IDUKKI): Mr. Chairman Sir, Shri Yashwant Sinha is now the Finance Minister of the BJP Government. It is very difficult for me to appreciate his present position because I know him not as a BJP leader but as a leader of a secular party for the last many years. Now this transformation has happened only recently.

I never expected that Shri Yashwant Sinha would deny the privilege to the ordinary Indian housewife to offer a cup of tea to a visitor. This was the cruellest part of his Budget. Probably, living in Delhi, we are not able to offer anything more than a cup of tea to our visitors. The maximum that we can offer is only a cup of tea. As you know, the Government is giving only Rs.1500 salary to the MPs. Even for us also how costly it is to offer a cup of tea today! I do not know whether Shrimati Sinha has told Shri Sinha about the additional commitment she is going to have.

THE MINISTER OF STATE IN THE MINISTRY OF RAILWAYS, MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF PLANNING AND PROGRAMME IMPLEMENTATION (SHRI RAM NAIK): Please say what Shrimati Chacko has told you to say here.

SHRI P.C. CHACKO :That is exactly the agony of my household that I am trying to express here.

One kilogram of branded tea is going to be costlier by Rs.10 to Rs.15. Here you have developed a kind of allergy to the branded products. I do not know why you are having that allergy.

I was also associated with some of the Committees in the Tea Board. I remember the recommendations of the Tandon Committee for the Tea Board. It was a Committee appointed by the Tea Board which once made a very specific recommendation that tea should be encouraged to be sold as packed tea and not as loose tea. The possibility of adulteration in the case of loose tea is much more than that of packed tea. Another Committee appointed by the Tea Board said very specifically that the Excise Duty and any other levy on the packaged tea should be removed. This is the recommendation of a Committee appointed by the Tea Board, which is an organisation of the Government of India. Packaged tea has different advantages; cheap packaging, MRP price written on the pack, quality assurance for the consumers, etc. But you have taken away many of the items from the packaged category, from the exempted list, from zero point Duty to 8 per cent, 12 per cent and 13 per cent Duty.

I do not know what made you to take a hostile attitude to the dairy industry in the country. I am sure that there is no personal reason for that. But you have charged more for branded butter, branded cheese, branded ghee, milk power and spices. I come from a constituency which is full of spice gardens. All the spices of the country like cardamom, pepper, vanilla are grown there. Till the other day, before he presented the Budget, I was a privileged person, but after he presented the Budget, I have become the most unlucky representative of my constituency.

18.00 hrs. On packaged spices also, an additional excise duty is being levied. Many other items are also there but because of paucity of time, I am not able to go into the details. But this Budget is definitely going to be inflationary.

I remember, almost with a prophetic prediction, the former Minister of Finance, Shri P. Chidambaram, after this Budget was presented said: `This Budget is going to be highly inflationary.' I feel that majority of these inflationary trends are contributed by the additional excise duty on the food products, especially on tea and packaged food items. You have denied it and said: `All these people will be proved as prophets of doom and there is not going to be any inflation. We are very much in control.' What is the situation regarding inflation as of today? The former Minister of Finance has amplified it very eloquently and so I am not going into the details. But the calculation of inflation in this country based on the Wholesale Price Index is totally faulty. I am not blaming the hon. Minister of Finance for this but I am blaming only the system that he has inherited. He should have to boldness to correct it. The Wholesale Price Index is no index for calculating inflation at all.

The official rate of inflation, based on the Wholesale Price Index, is 7.41 per cent for the week ended the 10th July, 1998. This is the rate of inflation for the current week. There is a steep jump in the rate of inflation from 6.86 per cent last week to 7.41 per cent this week. This means that there has been a jump of about 0.6 per cent in four days' time. This is the way inflation is going up in the country. I do not know whether with the natural cool and calm manner which our hon. Minister of Finance exhibits we can ... (Interruptions)

PROF. P.J. KURIEN (MAVELIKARA): Sir, the time is six o'clock. There has to be an extension of time.

SHRI RAM NAIK: Sir, many hon. Members are yet to speak. There is a long list of Members with you. In the morning, the hon. Speaker had called a meeting with the Leaders of Parties and Groups. There, it has been proposed that all hon. Members who want to speak would speak today and the Minister of Finance would reply to the debate tomorrow. So, accordingly, I request that the time should be extended so that hon. Members who are on the `waiting list' could get an opportunity to speak.

MR. CHAIRMAN: There are approximately twenty-five Members who want to speak. Presently we shall extend the time of the House up to eight o'clock.

PROF. P.J. KURIEN :I agree with it but my only request is that all hon. Members who want to speak from our side should be allowed to speak.

SHRI RAM NAIK: Everyone should get an opportunity.

PROF. P.J. KURIEN :I fully agree with this.

MR. CHAIRMAN: But Members should not take more than five minutes.

SHRI RAM NAIK: Yes. Hon. Members should not take more than five minutes except Shri P.C. Chacko who has already taken fifteen minutes! use of giving only five minutes? How can we conclude within five minutes?

MR. CHAIRMAN: All right, you can speak for ten minutes.

... (Interruptions)

SHRI P.C. CHACKO : Sir, I would like to thank Shri Ram Naik for the special concession that he has given me! MR. CHAIRMAN: The time of the House is now extended up to eight o'clock.

SHRI P.C. CHACKO : Mr. Chairman, Sir, thank you. I will not infringe into the time of other hon. members.

What is worrying hon. Members and the people of the country today is the sky rocketing rate of inflation, which is taking place beyond all predictions and statements of the Minister of Finance. The official figure of the rate of inflation as on the 10th July, 1998 is 7.41 per cent. That is the figure according to the latest statistics available. But this is based on the Wholesale Price Index. If we take the retail price index or the Consumer Price Index of the industrial workers, it is 10.51 per cent.

I am sure that the hon. Finance Minister has got all these figures. Today when we are discussing this Finance Bill, the inflation rate on the basis of the Consumer Price Index of the industrial workers is 10.51 per cent. It may be more, if you take the urban white collared workers into consideration. It may be much more if you take the agricultural workers into account. So, Sir, inflation has crossed double digit. I do not know whether the Government is aware of this calamity which is happening in this country. You were assuring us that it will be a single digit inflation only and it is not going to be inflationary. Hon. Chidambaram has said that the two previous Governments owe an explanation to this country. In spite of all the difficulties, the two previous Finance Ministers could bring down the rate of inflation. During Dr. Manmohan Singh's time, it was brought down to six per cent and during Shri Chidambaram's time, it was brought down to five per cent. Five to six per cent is an ideal situation so far as inflation is concerned. You are not able to control inflation at a particular level. You are increasing the prices of tea and other items. You are increasing the price of motor spirit and you are directly contributing to inflation.

MR. CHAIRMAN : Please conclude. You have spoken for ten minutes.

PROF. P.J. KURIEN: Sir, in between, about five minutes were lost.

MR. CHAIRMAN: Please try to conclude, as there are many Members to speak.

SHRI P.C. CHACKO : I will briefly deal with a few points. I am sure the Finance Minister is capable of understanding much more than what I am saying. He will understand what is in my mind. So, I am not going into the details.

Yesterday, I was watching with great interest the speech of the Finance Minister on Information Technology. You have given some concessions to Information Technology. It is very good. Information Technology is going to be the industry in future and I am not opposing whatever concessions you have extended to them. I welcome those suggestions which you have made.

But I have one thing to say. I have made a representation to the hon. Minister. He was kind enough to look into my representation also. Strontium chemical is used for the manufacture of colour television tubes. You have given concession to so many items in computer software and various other things but not to the colour television tubes which are made of strontium chemical, an imported item. We are now developing strontium chemical in this country out of imported strontium ore...(Interruptions)... You have reduced it from 25 per cent to 10 per cent. By imposing eight per cent duty, you have given something by the right hand and taken it away through the left hand. That four per cent works out to seven or eight per cent because of the depreciation of the rupee. Any imported item becomes costly because of the depreciation of the rupee. So, even if you say that it is four per cent, it will come to six or seven per cent. The cumulative effect of strontium is going to be very uneconomic to the industry.

I will come to the aluminium industry of our country. Our industry should be competitive also. If you take the last four years into account, you may find that the indigenous manufacturers of aluminium have doubled the price of aluminium. It was Rs.42,000 per tonne. It has gone up to Rs.70,500 per tonne. But what happened? The import duty on aluminium was ten per cent and it has gone up to 25 per cent and now it is 30 per cent. What about indigenous manufacturers who are not able to discipline themselves? They are hiking the prices to more than double and when the duty is increased, thousands of workers are left jobless which is a grave problem which this industry is facing.

My friend, Shri Premachandran has spoken about rubber and coir industry. I come from Kerala. Its name itself drives from the word coconut. The fibres got out of coconut husk combined with rubber form coir mattresses. The hon. Minister has stated that he proposes to exempt 100 per cent wood-free particles-based residues from excise duty. We know the Minister's broad-minded approach. This is nothing but a difference in density. You know that by putting coir fibre and latex together, we make mattress and foam rubber. Unfortunately, for the last few years, the duty on PUF - the polyurethane foam - is reduced which is imported. Now, PUF is replacing fibre foam. PUF is replacing the latex foam. PUF is taking over the indigenous products. You are a swadeshi Government. You should not allow PUF to encroach upon swadeshi products. Hundreds of industries are manufacturing this fibre foam....(interruptions)...Sir, you are the champion of the labour class.

Hundreds of industries are manufacturing such foam.

MR. CHAIRMAN :Please conclude.

SHRI P.C. CHACKO :Sir, you are a champion of the labour class. We will have to close these industries if this duty continues. That is a small thing which I wanted to bring to your notice.

The effective duty of seven per cent is going to affect the import of copper. Copper sulphate is used for agricultural purposes. In Kerala, there are a few units which are manufacturing copper sulphate. The copper sulphate is imported for agricultural purposes and also manufactured for agricultural purposes. We do not manufacture copper. We do not have copper. Copper is imported. As a balancing act, to help the indigenous manufacturers, you are imposing this levy. The imported copper is being used for various purposes. It is also used for making pesticides. Copper sulphate is a pesticide commonly used in agriculture. `Bolomixture' is a very common pesticide. You know, it has 101 applications. So, copper sulphate is manufactured. The raw material, that is, copper, is imported for that purpose. That may also please be exempted. That is a big burden on them.

The other point is about charitable and religious organisations. I know, you have made a reference about it in your speech. You have put a `comma'. You have not put a `fullstop'. You have said that charitable and religious institutions should be exempted. In this Finance Bill, there are clauses 22 and 22(a) of section 10 of the Income-Tax Act. If the proposed amendment is going to be there, the charitable institutions and educational institutions will suffer. They are doing a yeoman's service to the whole country where the Government service is inadequate. Where Government cannot penetrate or where Government cannot go, their services are being rendered to the poor people.

MR. CHAIRMAN: Please conclude now.

SHRI P.C. CHACKO : I have many points but I will not be able to cover all those points. Whenever you bring an amendment, a lot of repercussions will be there if you make it applicable with retrospective effect. Some overzealous officers commit a mistake. They want to do some kind of things. They make you to read out a clause which is unethical and very complicated. In the Finance Bill, an amendment is proposed for clause 40-A. It seeks to add an explanation for the word `executed'. That means, when the search process is on, the officers have got unbridled powers. They can start the search today. They can complete it within eight, nine or ten months.

When the final `panchnama' is issued, only then the search is executed. Here is an amendment which has come with a retrospective effect. It is creating unbridled powers for the officers. You want to take away the `Inspector raj'. Here is a different situation. The poor assessees are being harassed unnecessarily by the unscrupulous elements in the bureaucracy. There is an official amendment. You may apply your mind about this question.

Since you are such a nice person, all of us would like to support this Bill. But when you are imposing excise duty of Rs. 7,000 crore on two items alone and Rs. 790 crore on petrol, I am sure that your conscience will not ask us to support this Bill. So, we oppose this Bill. I hope you will remove all these anti-people duties.

PROF. P.J. KURIEN : Please remove all these things. We will support you! SHRI YASHWANT SINHA: I accept all the suggestions that you are making! PROF. P.J. KURIEN : Then, we will support! ">SHRI VARKALA RADHAKRISHNAN (CHIRAYINKIL): Sir, I oppose the Bill introduced by the hon. Minister of Finance. My opposition is not because of negative approach. I have my own reasons. Before I enter into the discussion on the Bill itself, I may be permitted to speak about my feelings in regard to financial matters transacted in this House. We all know that legislative accounting is the essence of parliamentary democracy.

18.15 hrs (Shri P.M. Sayeed in the Chair) But I am sorry to say that in this august House, that is the first casualty. Yesterday, we sanctioned about Rs. 14,000 crore in a minute without any discussion.

SHRI VARKALA RADHAKRISHNAN (CHIRAYINKIL): Sir, I oppose the Bill introduced by the hon. Minister of Finance. My opposition is not because of negative approach. I have my own reasons. Before I enter into the discussion on the Bill itself, I may be permitted to speak about my feelings in regard to financial matters transacted in this House. We all know that legislative accounting is the essence of parliamentary democracy.

18.15 hrs (Shri P.M. Sayeed in the Chair) But I am sorry to say that in this august House, that is the first casualty. Yesterday, we sanctioned about Rs. 14,000 crore in a minute without any discussion.

Is it Parliamentary accountability? We are enacting legislations in the House without speaking a word about it. The Demands for Grants of the Ministry of Agriculture were passed with only two Members having taken part in the discussion. I may say that scrutiny by the Standing Committee is no substitute for the scrutiny by the House. They are entirely two different things. The Standing Committee deals with a particular Ministry only and scrutiny by the House is totally of a different nature. The House is being denied of an opportunity to scrutinize the Demands for Grants. We have introduced scrutiny by Standing Committees only recently. In Kerala, we have introduced it decades before it was introduced in the Parliament. But that has not taken away the right of the House to scrutinize them separately. Unfortunately, in this House we have done away with the system of scrutinizing the Demands for Grants by the House. It is rather unfortunate considering the experience of the past two days. I stand for one nation. I am even prepared to sacrifice my life for it. If we function like this, the day will not be far off when the Members from the South will come to blow with the Members from the North. That will happen very soon. This is what we witnessed with regard to the Women's Reservation Bill. We witnessed very unfortunate scenes in this House which are shameful for us. With these words I come to the main Finance Bill.

MR. CHAIRMAN :Are you coming to the Bill now?

SHRI VARKALA RADHAKRISHNAN :Mr. Minister, I am very sorry to tell you all this. We are all representing our constituency people. We are here to speak about their grievances but we are being denied of that opportunity by a minority section of the House which has the power to control the House. It cuts at the roots of the Parliamentary democracy. It will not lead us to anywhere. It will not lead us to the objectives enshrined in the nobel Constitution which is a model to other countries.

MR. CHAIRMAN: Shri Radhakrishnan, you have still not come to the subject.

SHRI VARKALA RADHAKRISHNAN :I oppose the Finance Bill mainly because of two reasons. When we examine it we find that 65 per cent of the net collection comes from indirect taxes and 35 per cent comes from Direct taxes. So, it is the poor man who is paying the taxes. Though we achieved Independence 50 years ago, even today a poor man working in the field or in the factory is compelled to pay taxes by way of excise duty or customs duty. The only source of income for the State Government or the Central Government is indirect tax. The poor man will always be taxed. Our GDP comes to 12 per cent. According to GDP, our net tax collection is 11 per cent. This is the main reason for opposing the tax proposals contained in the Bill. It is a heavy burden on the poor man. You cannot escape from this fact. One must follow progressive taxation but we are following regressive taxation. Regressive taxation will not improve the society and the net result is, rich are becoming richer and the poor are becoming poorer. They are made to starve because of this regressive taxation. I may tell you that we have tax arrears of the order of Rs.50 crore. The Government has not been able to collect them. Maybe, some of them got lost in appeals and some in other technicalities.

The Ministry of Finance is not so much interested in collecting the arrears of tax as it is interested in putting the common man to difficulty. Whenever there is financial crunch, the Government looks to the common man. It immediately raises tax on petroleum products, the Customs Duty and the Excise Duty. It leaves the indigenous producers in total disaster and economic difficulties. I would ask the hon. Finance Minister, "Is it not our experience?"

I would like to talk about rubberised coir. Shri P.C. Chacko has also mentioned it. I understand that the Standing Committee on Finance has strongly recommended that this item should be exempted from duty. Not only rubberised coir, there are some indigenous products made by Chavari Minerals, Travancore Chemicals, and Fertilisers and Chemicals Udyog Mandal, Alwaye, which are required to be exempted from duty. These are indigenous products and these are only intermediaries. These are not finished goods. The total tax collection from these indigenous products would be very negligible. Why should the Government put these domestic industries to such great difficulty?

Regarding production of phosphates and chemicals, they themselves do not produce finished goods. They rely on imported material. However, the importing agencies have finished goods because the Government has relaxed all import duties. A situation has arisen in the country where the domestic industry is not in a position to compete with the foreign industry.

I would agree with the Finance Minister on one thing that he has enlarged the tax net. The provision of issuing PAN has been extended to 33 centres. That is all right but not sufficient. It will have to be extended to all areas in the country. The Government has to collect taxes through direct taxation in all places and in all fields and leave the poor man to do his job.

The Finance Minister has proposed to introduce the Samadhan scheme. There also there is a flaw. According to the scheme, people whose taxes are in arrears and whose cases are in dispute can prefer an appeal following which the matter would be pending before the appellate authority and they need not pay their tax till the case is decided. But, there are innocent people, honest people, who may like to remit the tax first and prefer an appeal later. While the person who has intentionally not paid his tax arrears is getting the benefit of this scheme, the person who has remitted the tax arrears is deprived of settlement of his dispute under this scheme. I urge upon the Finance Minister to enlarge the scope of Samadhan to include the taxpayer who has remitted his tax arrears. If he does not do it, he would be doing injustice to people who have already paid their tax arrears. I hope the Minister would understand the position and would take a decision to include this category of cases also in the scheme.

There is another matter which I would like to impress upon the hon. Finance Minister and that is in regard to the nationalisation of insurance sector. You have not defined as to what is a `private firm'. I was trying to understand as to what is a `private firm'. Is it Indian or multinational or multinational-cum-Indian? I do not know. We can express an opinion on this aspect only when it is defined. In regard to nationalisation of insurance sector, I would like to know as to what exactly the Government is proposed to bring in. Which is a real private firm? That must be made clear. Then only we can take a decision. Anyhow, at any rate, we are strongly opposed to nationalisation of insurance sector. ... (Interruptions)

SHRI YASHWANT SINHA: Are you opposed to nationalistion or denationalisation?

SHRI VARKALA RADHAKRISHNAN:Now, among the public sector undertakings, my learned friend, the hon. Finance Minister is aware that nationalisation of insurance sector was introduced by Shrimati Indira Gandhi because of the fact that insurance people and private entrepreneurs were defrauding public money. That was the reason why she nationalised the insurance sector. We are reverting it. If we revert it to that position, generally the situation will not be better. The poor man's money will be left to the private individuals or dishonest people who will definitely defraud public money. There is no doubt about it. Moreover, the GIC as well as the LIC are doing the business with a considerable profit. You cannot say that they are bringing liabilities to the Exchequer. You cannot claim that. The GIC as well as the LIC have increased their business by three or even four or five times. That will not be the reason for nationalising the public sector undertakings in the insurance sector. We vehemently oppose the policy of the Government in that respect.

I would like to draw the attention of the Government to the fact as to why should we impose Rs.500 as Foreign Travel Tax. Poor people from my place as well as from other parts of India are going to gulf countries. Whenever they proceed or return from gulf countries, the airport authorities collect Rs.500. Previously they were collecting Rs.750. Now, it is reduced to Rs.500. Why should that amount be collected? Moreover, one-third of it goes to the agency of the private airlines and the Central Government will be getting two-thirds of it. After all these poor labourers or workers seek employment abroad with a visa. They spend thousands and thousands of rupees to get the visa from gulf countries. At that time, Shri Yashwant Sinha is demanding the amount. You pay Rs.500 then only you can leave this country. That is the position. I do not know whether you are aware of it or not. In our State, thousands and thousands of people are proceeding every day to gulf countries seeking employments. After all, you get a negligible amount. I can understand when you take money from rich tourists.

I hope the hon. Finance Minister will take a sympathetic view in both the matters. (Interruptions) I will not take too much time.

Before I conclude, I may be permitted to bring to the notice of the hon. Finance Minister the increase in customs duty of certain items. The hon. Finance Minister has given a list of 98 items which relate to the common man. Sir, if you want to purchase a paper, which is of better quality or imported quality, you will have to pay additional excise duty. Suppose, you wish to purchase an imported pen, you will have to pay additional duty. I will not take too much time by reading out all these items.

He has given certain concessions with regard to items like video cassettes. But if a man wants to purchase paper or some other household material, he will have to pay more. I am not speaking from the air, I am speaking from the list given in this Book. If you go through this list he has exempted so many items like software, television, etc. But the duty has been increased on material used for construction of a house. On petroleum products, duty has been increased, or for that matter any other material which may affect the common man's purchasing power, excise duty has been increased.

With due respect to Shri Yashwant Sinha, I would like to know how would he justify this increase. That is why, after hearing Shri Chidamabaram, I came to the conclusion that what he has said is correct that the hon. Finance Minister has put a proposal for bringing the inflation rate to double digit. Previously, it was in single digit. It is because the excise duty is so much that it will definitely affect the common man and the poor man in his purchasing capacity.

On medical, surgical and other items like medicines etc. duty has been increased. The duty has been increased from five per cent to eight per cent on medical equipment. Duty has been increased to eight per cent on spectacles. I do not think the hon. Minister uses them but I use them. These are items which concern the poor man of this country.

So, I would request the hon. Finance Minister to reduce as far as possible this increase in duties and change the duty rates also.

With these words, I strongly oppose this Finance Bill.

">SHRI KHARABELA SWAIN (BALASORE): Mr. Chairman, Sir, I thank you very much for giving me this opportunity to speak.

I rise to support the Finance Bill because the present Finance Minister has very sincerely tried to set the things in order in this year's Budget.

I support this Bill because this is an excellent Budget. It is an excellent Budget because of two reasons. Everybody has heard the speeches made by the hon. Members of the Opposition. Has anyone of them just found any serious flaw in the Budget besides saying that this tax has gone up and that tax has gone up? They have not found any serious flaw in this Budget. That is the first reason for which I commend this Budget.

We have heard the speech made by the former Finance Minister, Shri P. Chidambaram. The second point is that you must read between the lines as to what he has said. He did not say many more things than what he has said. Did he say that he handed over a healthy economy to the present Finance Minister? Did he say so? I congratulate him for the scintillating speech that he has made. I congratulate him because he did not make his speech just for the sake of opposition. He made a very constructive speech. I congratulate him -he is not present here now -- because he made a speech which is befitting his status.

What I am saying is that he did not say that he had handed over a healthy economy. Now, one of the hon. Members and Shri P. Chidambaram has also said that this Budget is going to bring in inflation. Does it mean that because the present Finance Minister has increased the taxes here and there, this inflationary trend has been seen now-a-days? What about the gloomy picture painted by the Economic Survey for the last year? Is it not true that the economy stagnated since the last 18 months? Is it not true that the GDP growth of 7.5 per cent, which was in 1996-97, fell to five per cent in 1997-98? Is it not true that the fiscal deficit targeted at 4.5 per cent went up to 6.1 per cent in the last year? Last year, the export fell from 4.5 per cent to 2.6 per cent. Do you mean to say that all these points do not subscribe to inflation? All these points do subscribe to inflation.

He has said that the Government expenditure must be controlled. I agree with him that the Government expenditure must be controlled. This is the only Government which has got a mindset to control the expenditure because even before we came to power, we were talking in our party circles about the need to control the Government expenditure. Shri P. Chidambaram has said that the United Front Government and the Congress Government did not have the real desire to control the Government expenditure.

This year, our debt servicing is Rs. 1,75,000 crore.

What is our revenue receipt? It is Rs.1,61,994 crore. Our revenue receipt is less than what you are paying to our creditors. Rs.1,75,000 crore debt serving with more than Rs.1,00,000 crore as capital. Is it a healthy order? The previous Governments have brought us to this state of affairs. That is why, this present Government is in a fix and because of this only, the inflation is just going up.

Thirdly, he had talked about Moodys' downgrading the ratings of India. By what way the Moodys downgraded the ratings? It is not that it happened it in one or two or three months. Not that the financial position of India went down. It is only a mind-set. Moodys downgraded the ratings of India because Moodys thought that because of the sanctions imposed by the United States of America and some other countries of the world, the financial position of India would be going down. That is what they thought.

Two or three months back after the Pokharan nuclear tests, many countries were talking about a more, vigorous and further sanction. Is this being said by any other country now? Now they are talking about waiver of sanctions, reduction of sanctions and removal of sanctions. The American Senate and the American Government themselves are finding flaws. They are now tracing out the flaws in their own laws. They are thinking of how to dilute the sanctions because the sanctions are hurting them more than us. So, I am asking this question. When the sanctions will be wiped out totally after two or three months, will the Moodys upgrade the ratings of India? It is a passing phase. It is a mere mind-set and nothing else.

So, I may tell Shri Chidambaram this way that this country is not going to fall prey to sanctions. I can emphatically say that. I can tell you that this is an excellent Budget which was made possible by the Government of India led by Shri Atal Bihari Vajpayee. Earlier, it was not made possible although the same Government was there, the same country was there, the same economy was there, but the mind-set was not there, the real desire to perform was not there and the political will was not there. Shri Atal Bihari Vajpayee is the only one proud son of mother India, who could do this thing and who can show it to the world that India can become the greatest, the most powerful country among the comity of nations in the next 21st century. It is Shri Atal Bihari Vajpayee who made all the changes which made all the difference between the previous Government, the previous Congress Governments and the United Front Government.

I am a new Member. The way you are just looking at me, I understand that. It is a very threatening look. I should complete my speech. Certainly I will do it.

I will not go into the details of this Budget. We have increased the allocation for education sector by 50 per cent. The main thrust of this Budget is infrastructure development. This Budget is to increase the infrastructure sector. We have increased the allocation for infrastructure sector by 35 per cent. The economists say that for healthy economy, eight per cent growth is required. How do you achieve this growth? Unless you develop this infrastructure, we are not going to achieve eight per cent growth per year. It is not possible.

Unless you build the roads, develop the power sector, develop the telecommunications sector, you are not going to achieve the growth rate.

About the growth rate, I am very sure, that 35 per cent growth rate will be there in the infrastructure. By the end of this year, we can positively attain eight per cent growth rate which was not attained by any other Government. I mean to say, that I would like to tell my hon. colleagues from the Opposition that the test of the pudding lies in the eating. Let them wait for one year then they will see whether we attain the eight per cent growth rate that is expected by our hon. Finance Minister.

Finally, I will just make two or three suggestions. One is a very important one because I am a Member of the Railway Standing Committee. The first point is, I will appeal to the hon. Finance Minister to kindly evolve a National Transport Policy. I mean to say that now the road sector has been allowed just to enter into a competition with the Railway sector, but the road sector by which we are transporting goods is very costly. The per unit cost is more if we transport by road. If we transport by rail it will come to much less. I appeal to the hon. Finance Minister to kindly envisage that a National Transport Policy to determine up to what length the railway will carry the load and to what length the road sector will carry the load.

Finally, let me tell the Finance Minister about the funds being sent to States and the MPs. He is sending crores and crores of rupees to the States for development under EAS schemes, Jawahar Rozgar Yojana and under the MPLAD scheme. I want the MPs to be more empowered; more power may be given to them so that they could supervise it more. They are not in a position now to supervise. We are at the mercy of the Collector, we are at the mercy of the Government of India and at the mercy of the State Government. He may kindly see that we are more empowered. He may also increase the MPs' fund from Rs.l crore to Rs.2 crore so that we are able to help our constituents in a meaningful way. Thank you.

">PROF. SAIFUDDIN SOZ (BARAMULLA): Mr. Chairman, Sir, I have only a couple of points to say. I would first make some general observations very briefly in the hope that he will kindly respond to them.

I want him to kindly consider and change the whole structure of sales tax; because in most cases people do not pay sales tax at all. So many people have spoken about the inspector raj and about that inspector raj I have personal experience. Whether it is in Delhi or the State Government that has to collect the sales tax, it is not paid by the traders.; I will come to the Union sales tax also. But as the Finance Minister he may kindly go into this. Because I have observed that apart from some Emporia in Delhi, sales tax is not paid at all.

At Panchquan Road, Lajpat Nagar and South Extension, wherever you find household furniture is being sold, nobody pays sales tax. One of those people told me that a senior officer who purchased some furniture from him, when he started making a bill, asked him, "Mereliye bhee hoga?". The tragedy is that it is l2 per cent and nobody pays. And if the Minister has to exercise a review the whole structure of tax, this sales tax is a disaster. Nobody pays l2 per cent and actually it is the inspector who makes money. How much the inspector collects nobody knows. They purchase land, they make houses and what kind of things, nobody knows.

It is also part of the black money, it is a perennial economy. Only the inspector has to be removed. How can we do it? The Finance Minister can do it. Not now; but he can respond later. This whole gamut of activity will have to be watched and we have to punish the culprits. We have to collect the money from the people.

I have collected only a couple of things for your kind consideration.

Then, I wanted to say that it has become a fashion. It is not a complaint against you as a person. Shri Chidambaram did the same thing. I think, Dr. Manmohan Singh also did the same thing. They call it a necessity. I refuse to do it. Bharat is the costliest country in the world so far as petrol is concerned. Every year there is some increase in petrol. Now, they say that the increase is one rupee per litre. In Khan Market they had increased the price of mutton disproportionately. So, I raised a question why did it happen? कहता है कि हमें यमुना पार से स्कूटर में लाना पड़ता है।

Now, the increase in petrol might be one rupee per litre, but the scooterist will charge six rupee and the rate of mutton per kilogram will go up by five rupee. That is the impact of increase in petrol. Today, I am saying it with a sense of responsibility. In the whole world, petrol is the costliest item in India. I have collected some figures also, but I will not waste your time because I have promised that I will not repeat things that have been spoken here. So, the tax structure will be examined by you for the States as also for the Union.

But coming to your Memorandum explaining the provisions, I want to bring to your kind notice pages 20, 21, and 24. I feel that if you have more time, then you would see on those pages. You would yourself get down to not increasing the duty at all. But perhaps there was no time with you and you could not deal with those items in detail. But here I would request you to consider about butter and cheese. They are necessary items for children. They must take butter; they must have cheese. I am talking of middle class and lower middle class people. But ghee, be it branded or not branded, is injurious to health. It must be banned, if not banned, then you raise taxes. शुद्ध घी हमें चाहिये। शुद्ध घी खराब है।

because it creates blood pressure and other tensions. I would have not groused if the hon. Minister had increased the price of ghee. He has done it by eight per cent. But what about butter? In my childhood , we do not have butter at all. But, today, I find lower middle class, even a peon, working somewhere, will try to afford a little education to his children and a little breakfast for them. So, butter and cheese are very essential items.

As far as packaged tea is concerned, I would not take interest in that. There was a telephone call from Srinagar that saffron has been taxed. It is a flower. The poor people are having small farms. So, I would request you to consider not raising on saffron. These are the items where you should not raise taxes.

Now, I will come to cigarettes. The hon. Minister has increased Rs. 10/-, i.e., from Rs. 90 per thousand to Rs. 100 per thousand. You could increase it more. We must be unique in the world.

In the Zero Hour I was saying that in Maharashtra they said that the Americans can do it. They can discuss Lincoln and his killer simultaneously, and dialogues can take place on both sides. But we are a different country. In America, a ten-year old child can possess arms. In certain respects, American society is a violent society. But we are a peace loving country. When I said we should be unique, we should be unique. We should abolish smoking. This is producing pollution and spoiling the health of the people. Poor people have taken to it. A ten rupee increase per thousand is no increase at all.

I would say that you should kindly consider it and, in your magnanimity, you should give relaxation on butter, cheese, milk, biscuits, etc. Sir, Budget is a very interesting document. I wish you well, Mr. Finance Minister. You are here through democratic process and we should not grudge it. Next time if you are the Finance Minister, then you should call us for a meeting before making the Budget because you will start that exercise well in time.

Coming to the increase in postal charges, I would raise a question. Now the educated middle class people have access to E-Mail, to computer, to FAX, to telephone, to TELEX and all that, but common people do not have access to any of these things. Therefore, increasing the cost of an inland letter by fifty paise is too much. You should kindly keep it at Re.1. The cost of envelope also should not go up to Rs.3. Kindly consider it because it is the poorest of the poor who will write a letter. I do not see educated people who have access to modern gadgets, writing letters at all. That time is gone now. They will shoot an E-Mail. I have the computer but I have not yet learnt E-Mail, maybe the hon. Finance Minister can do that. Now people do not write letters. These are meant only for the poorest of the poor. So, there should be no increase in the cost of postcard or inland letter or envelope. You can compensate it by increasing somewhere else, but kindly do not do it here.

I would very briefly mention one or two things about Kashmir. Shri Chaman Lal Gupta said that farmers should be given a waiver on loans. I support him on that and urge the Finance Minister that loans to farmers up to Rs.50,000 should be waived.

I have to say a couple of things more. One is about railway. I raise it deliberately and very seriously because the Railway Minister had made a statement. I offer figures which were not available with him, although he had worked very hard on that. In 1995, Rs.50 crore were available for railway in Jammu and Kashmir. In 1983, late Shrimati Indira Gandhi, the then Prime Minister, had said here in response to my question that Rs.5 crore more would be provided for Jammu-Udhampur railway. But it never happened. Then there was the price escalation. So, that railway line has not come up. Hon. Deve Gowda and hon. I.K. Gujral also went to Kashmir and laid foundation stones. What I see now is that this year Rs.200 crore were allotted but that was slashed down to Rs.75 crore. When Shri Nitish Kumar stood up here to answer my question, he made a remark that the Railways, from their own funds, can afford only that much. It means that at the current prices they need Rs.2,500 crore and if they spend Rs.100 crore every year, leaving price escalation out of the gamut of this discussion, it will take the Railways 25 years to build that railway line. We are hard pressed for railways. Kashmir cannot live in isolation. We are part of this country but we are not on the railway map. I am sure, it is not the Railway Minister who can put us on the railway map, the hon. Prime Minister should consider it and the hon. Finance Minister should consider it. Kindly make a special plan for Jammu and Kashmir. I would say that on the pattern of Konkan Railway, you can have a Kashmir Express Corporation and it should be a part of the General Budget. Then only railway can come up in Jammu and Kashmir, otherwise it can never come up because the Railway Minister has said that out of his Budget he can afford only this much.

Sir, the State of Jammu and Kashmir has passed through a financial crunch and the PTV is causing disaster by making exaggeration and spreading untruth. If there is a financial crunch in Bihar, I do not say it should not be there in Kashmir. But we must take notice of it. Ultimately you have to spend the money. Every penny comes out of the Consolidated Fund of India. So, we should take stock of the situation in advance so that it would bring grist to the mill. For the last two or three months, there has been a financial crunch in the State of Jammu and Kashmir. That should be removed. You have already tried to remove it and we are grateful to you for that, but in future it should not happen... (Interruptions).

19.00 hrs. MR. CHAIRMAN :Prof, Soz, please conclude.

PROF. SAIFUDDIN SOZ:Mr. Chairman, I am raising the last point. I know that there is paucity of time. I made a plea to the Ministry of Industries. I will not say that it is in a mess, but I will say that something has gone wrong there. I went to the Minister of Industries and told him that HMT was the only unit which was sickening to the bone. I repeat in this House that HMT is the only Central Government public sector undertaking which is there. Instead of reviving that, they have shifted the showroom. He made a heartening statement. It received a lot of coverage in the Press there.

I say as a representative of people not to shift this showroom. Will they listen to the Chairman of HMT who sits in Bangalore and does not know anything about Kashmir? I invited him to come to Kashmir and convince me about why he is shifting the showroom. It may have five employees, but shifting of it creates a bad impression. Then, they are shifting a part of it to Jammu. They can open another unit in Jammu, but should not demolish HMT in Srinagar. He had made a remark which was heartening and the Press in Kashmir gave him a lot of credit for that, that showroom will not be shifted, that HMT unit will be revived fully and that its part will not be shifted to Jammu. If at all they have to set up HMT unit in Jammu, I welcome that idea. But nothing should happen to HMT unit in Srinagar. He may kindly inform the Ministry of Industries that last time, he had committed this here.

I have many more things, but I am not raising them due to paucity of time. Thank you very much.

">SHRI T.R.BAALU (MADRAS SOUTH): Sir, I rise to oppose this Bill. You have given me this opportunity to speak in this august House on behalf of my party, as one of the common men and as a humble farmer of Indian nation which has got 950 million population out of which 372 million people live below poverty line and whose per capita income is 310 dollar per year and the rate of population increase is 1.9 per cent. I would request the hon. Finance Minister to concentrate on population control. In the present Budget and the Finance Bill, I have not seen that much thrust is given to population control. A decade ago, the population control measures were strictly adopted. The State of Tamil Nadu went to the extent of implementing the population control measures so well that by and by the incentive we got from the Central Government was that we lost two seats of Lok Sabha. Before implementing the population control measures, Tamil Nadu was having 41 Lok Sabha seats. Now, these seats have been reduced to 39 because of the implementation of population control measures, thereby the rate of growth of population has come down. So, I would request through you that the Government should consider to get us back whatever seats we have lost because of proper implementation of population control measures as it should not act as a disincentive.

During the sad days of emergency, myself, our leader, Mr. Murasoli Maran, many and many senior Members and leaders of B.J.P. party were arrested and imprisoned under the Maintenance of Internal Security Act. At that point of time, the Congress Government had listed `Education' in the concurrent List. There was a lot of hue and cry, at that time, from the BJP top ranking leaders. But now they are at the helm of affairs and I request them to see that `Education' is brought into the State List.

I would once again insist that population should be controlled so as the opportunities may be shared. How are you going to give more employment opportunities? The only way to provide more employment opportunities is through agriculture and nothing but agriculture.

Sir, before coming to the discussion on the Finance Bill, I demand that one-third tax collection of the Centre should be given to the States, as demanded by my leader, Dr. Kalaignar Karunanidhi.

Sir, I have got some statistics with me. In our country, 65 per cent of labour force creates 31 per cent of GDP in agriculture and, at the same time, only 13 per cent of labour force creates 27 per cent GDP in industry. In a way, agriculture gives more employment. But the industry is giving less employment opportunities whereas it creates more GDP. Are we going to industrialise and provide less employment opportunities to our people or instead of having more GDP, are we going to give more employment opportunities to 40 per cent of the people below the poverty line in the agricultural sector? I urge upon the Government to come forward to modernise our farming sector and to upgrade the technology that is being used by our farming community. I also demand that enough thrust should be given towards soil conservation and the fertility of the soil should be kept up so that the crops can grow well.

Sir, the second point I want to deliberate upon here is about inflation. Our hon. Finance Minister says that he would keep inflation between 6.5 and 7 per cent and he would see that his fiscal deficit does not go beyond 5.6 per cent. How will the Finance Minister be able to keep the fiscal deficit within 5.6 per cent?. Unless and until he increases the GDP upto 14.8 per cent at the present level of prices, he will miserably fail and inflationary trends will grow.

Sir, what are the causes for inflation in the Budget? All the qualifications that inflation needs are all there in our Finance Minister's Budget. The fiscal deficit is Rs.91,025 crore, the revenue deficit is Rs.48,068 crore, the interest payment is Rs.75,000 crore and the rate of interest payment compared to the gross revenue receipt by way of taxes, duties etc. is 46 per cent. In the given situation of having a fiscal deficit of Rs.91,025 crore and a revenue deficit of Rs.48,068 crore, it means that 50 per cent of the finance is used for revenue expenditure. Is it fair on the part of the Finance Minister to do this? Will it not create inflationary trends? This is not only a waste of our national savings, but, at the same time, it would also create a mounting interest burden on the Budget.

Sir, I will now come to the expenditure part. In 1998-99, the Finance Minister has proposed that the Plan expenditure will be Rs.72,002 crore, the Non-Plan expenditure will be Rs.1,95,925 crore and the total expenditure will be Rs.2,67,927 crore. The excess amount which he is going to give, over and above Mr. Chidambaram's Budget, is Rs.21,310 crore as Non-Plan expenditure and Rs.11,372 as Plan expenditure. What are the funding arrangements? He will have to give budgetary support and he will have to give internal extra-budgetary support from the public sector undertakings. He is going to give 29 per cent as budgetary support and give 71 per cent from internal extra-budgetary resources. The total amount which he is going to give, over and above Mr. Chidambaram's Budget, is Rs.8,835 crore as budgetary support and Rs.15,319 crore as internal extra-budgetary support from the public sector undertakings.

So, a total amount of Rs.24,154 crore is in excess. How will the PSE resources jump suddenly from Rs.47,404 crore to Rs.62,723 crore and the excess amount is Rs.15,319 crore. Is it via profits? Is it via internal accruals? Is it via debentures or from bonds that you are going to raise or is it from external commercial borrowings? I want to ask a pertinent question. You cannot go for debentures in the given condition of the share market. You cannot issue any bonds as nobody will come and have it. Only thing that you can do is, you have to go for external commercial borrowings. At this juncture, after Pokharan-II, is it possible to go for external commercial borrowings? I want to know this from the hon. Finance Minister. There is no other option. Finally, you have to cut your coat according to your cloth. You have to cut your Plan Outlay. Sir, previously in the last Budget, your predecessor has cut Rs.10,000 crore from the Plan Outlay. Now, my dear friend, Mr. Yashwant Sinha, has the guts to increase more than Rs.20,000 crore. But is there any possibility to do this? Only thing you are relying upon is the public sector undertakings. I want to know whether the health of the public undertakings is good to take care of your proposals. I want to ask a question. By and by, the atmosphere is not congenial enough to help the Finance Minister. There is hike in prices of essential commodities. You have rolled back the prices of urea and petrol. We welcome it. The value of the rupee has plummeted to a level of Rs.43 per dollar. There is a heavy debt servicing burden of Rs.1,75,253 crore. Out of which, Rs.75 crore alone is the interest burden. We cannot stop the expenditure that has to be incurred for paying the Fifth Pay Commission arrears. You cannot cut down the Defence expenditure of Rs.40,000 crore because it is a holy cow. We cannot permit you to reduce the subsidies. You cannot postpone the debt service obligations. You cannot and you should not cut the plan expenditure because it will affect the employment generation. Ultimately, there is no other way but to cut short the plan outlay like your predecessors.

Sir, in the given situation the debt servicing burden is Rs.1,75,253 crore. Of which, Rs.75,000 crore is the interest burden and Rs.1,00,253 crore is the repayment amount this year. But the total revenue receipt is Rs.1,61,994 crore. It is a shame on the part of the Government that the debt service burden is Rs.1,75.253 crore against the revenue receipt of Rs.1,61,994 crore. So, the debt servicing burden is more than our revenue receipts. I want to know how the Government is going to tackle this sort of issues.

Sir, some conspiracy is being hatched at the instance of Ms. Jayalalitha who is supporting this minority Government. This Government is obeying her command* (Interruptions).

THE MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE MINISTRY OF FINANCE (BANKING, REVENUE AND INSURANCE) (SHRI KADAMBUR M.R. JANARTHANAN): Sir, he should withdraw these words... (Interruptions)

  श्री राजेन्द्र अग्िनहोत्री (झांसी): सभापति महोदय, ये शब्द वापिस होने चाहिए।

MR. CHAIRMAN : I am on my legs. Shri Sathiamoorthy, please sit down.

... (Interruptions)

MR. CHAIRMAN: Please let me deal with this. If there is anything objectionable, I will expunge it.

... (Interruptions)

MR. CHAIRMAN: I have already expunged it.

... (Interruptions)

MR. CHAIRMAN: Nothing will go on record.

(Interruptions)** MR. CHAIRMAN :I have already expunged it.

SHRI YASHWANT SINHA: Shri Baalu .... (Interruptions)

SHRI YASHWANT SINHA: If you do not yield, I will not speak.

... (Interruptions)

MR. CHAIRMAN: Shri Baalu, you have to speak only on the Finance Bill and you should not drag other personalities into this.

... (Interruptions)

_________________________________________________________________________ * Expunged as ordered by the chair ** Not Recorded MR. CHAIRMAN: Let me deal with him. Shri Baalu has yielded to the hon. Finance Minister. Mr. Finance Minister, do you want to say something?

SHRI YASHWANT SINHA: Sir, Shri Baalu, taking advantage of the intervention on the Finance Bill, has raised an issue which is absolutely unconnected with the Finance Bill and the debate which is going on. But since he has raised it, it is my responsibility as the Minister in charge to deny that allegation with all the emphasis at my command.

MR. CHAIRMAN: Shri Baalu, please do not bring the names of any personalities or any such things. You have to speak on the Finance Bill.

... (Interruptions)

officials .... (Interruptions)* MR. CHAIRMAN: You should not say such things. This will not go on record.

... (Interruptions)

MR. CHAIRMAN: You please hear me. I am dealing with it.

... (Interruptions)

SHRI V. SATHIAMOORTHY : Sir, it should not go on record. I may clarify that it was the Principal Sessions Court in Chennai which has given direction to the investigation officers to investigate into the matter.

MR. CHAIRMAN: I will clear your doubt. If he has expressed any objectionable things, then they will be expunged. (Interruptions)

SHRI INDERJIT SINGH RAO: Thank you, Mr. Chairman, for giving me an opportunity to speak.

SHRI P. RAJARETHINAM (PERAMBALLUR): Shri T. R. Baalu is misleading this House by giving false information ** MR. CHAIRMAN : You will have to withdraw your words now. You must beware not to speak like this.

Expunge that also. You are casting aspersion on the Chair.

_____________________________________________________________________________ * Not Recorded ** Expunged as ordered by the chair ">SHRI INDERJIT SINGH RAO : Sir, I realise that when I speak on the Finance Bill, I labour under a constraint as well as a handicap. The constraint is of time. As I am the first timer, I have been given time at the fag end of the Budget deliberations and I think that before I even put forward my point of view fully before the Finance Minister and the Government, you are constrained to ring the bell. However, I can avail the time.

The handicap is that I am an agriculturist. I am speaking on a subject which relates to agriculturists, by and large. Speaking on the Finance Bill is generally the preserve of economists, businessmen and industrialists. ... (Interruptions)

MR. CHAIRMAN : This is his maiden speech. Please do not disturb him.

... (Interruptions)

SHRI INDERJIT SINGH RAO : This is my maiden speech and my thread of thought would obviously be disturbed, if people disturb me. (Interruptions)

What I am trying to say is that when the Finance Bill is debated, it is generally the preserve of industrialists, businessmen and economists. When finance is mentioned, agriculturist gets up and goes out. It is only a few diehards like Shri K. Natwar Singh and a few others who are sitting here who speak on the Finance Bill. But generally speaking, the agriculturist gets up and goes away. When the agriculturist gets up to speak, he talks about licences and patently obvious things like the urea plants and the Power Bill. I am not going to deliberate upon those things because in the Budget, they have already been discussed. But I would like to say one thing. I would like to say through you that when the Finance Minister says that the price of urea will be raised by one rupee per kilogram, does he mean to say that the agriculturists sitting all over the hall do not realise what it amounts to? Which farmer, Shri Yashwant Sinha, buys urea by the kilos? No farmer buys it, even if he is a 2 1/2 acre farmer. Today the situation is that nobody who is in that profession is leading a good life. He is barely making a subsistence living. When you say one rupee, then you are talking for every kilo of urea of a bag of 50 kilos. Farmers buy urea by the kilos. Fifty rupees on a bag of urea means about 25 per cent to 28 per cent in the price of urea. Is it one rupee increase? I am glad that an attempt, if it is a deliberate attempt, was prevented from being fulfilled by members of their own coalition.

The second point is the Power Bill. The Power Bill, as it stood and as it was the intention of the BJP, if it was passed, it would have cut off the hands and feet of the farmers in three years time. Why? It is because, after three years, the farmer would have to pay the cost of installation of electricity. Today the farmer, I can say in my State, pays Rs.1 1/2 or Rs.1.75 per unit of power. Three years later, he would have to pay the cost of construction in terms of Rs.5 or Rs.7 per unit of power. The timing is amazing. There was a protest by the farmers outside, and by our Party. The people are dying like flies in Andhra Pradesh, Karnataka and other States. The Bill is hitting under the belt of a farmer. I again thank the AIADMK people who are sitting here. जिबह कर दिया था आपने किसानों को। मैं इस पर ज्यादा चर्चा नहीं करना चाहता, बहुत से लोगों ने इस पर बोला है।

My village is in Haryana. I am from Haryana. My constituency is adjacent to Delhi. I used to come and go twice a week. When I come to Delhi and when I go back to Haryana, I used to say thanks to the Lord. I was born in a rural area, in a village. When I go back, I see the yellow fields of mustard and rice and I see the green fields of barley and wheat in the midst of the trees. I am a man of rural areas. As a villager, I lift my head high when I walk. The pugree on the head of the villager is his preserve - और वह पहनकर शान से सब जगह जाया करता था, लेकिन आज कया स्िथति है, आज मैं अपने गांव जाता हूं तो उन एरियाज में जहां मैं हरे-भरे खेत देखा करता था, अब वहां ईंटों की दीवारें लगी हुई हैं, फैकटरियों की तारें लगी हुई हैं। हमारा छोटा सा हरियाणा जो पंजाब के बाद देश का पेट भरता है। इन्द्रजीत सिंह जारी उसकी एग्रीकल्चरल जमीन के ऊपर, हरे-भरे खेतों के ऊपर धड़ाधड़ कब्जे हो रहे हैं। कौन कब्जे कर रहे हैं - बीजेपी के समर्थक।

This is my assessment. You may differ with me. The constituency of the BJP is that of the traders, the businessmen, the industrialists and last but not least, it is the face of Shri Atal Behari Vajpayee. If it is not for the face of Shri Atal Behari Vajpayee, they would not have got 182 seats by themselves. I used to hear his speech on the television. I just used to say that here is a man who is speaking from the core of his heart. My feeling was that were he to get a chance, he would do good to the country and so he should be given a chance. He laboured hard for so long a period. He has been trying for it for so long a period to occupy the Prime Minister's Chair. At last, he achieved it. But in the very first Session, I was amazed to hear when he said: अगला इलैकशन नहीं लड़ रहा हूं, उन्होंने हाथ ऊपर खड़े कर दिए।

I thought that he is made of of a stern stuff. But he is like a putty. He is a man whom the country believed. It is because of his face that the BJP was able to get 182 seats by itself...(Interruptions)

SHRI YASHWANT SINHA: I know it. I am appealing to you to yield for a minute. Again I would request you to confine to the Finance Bill. We are discussing the Finance Bill. So, we should confine ourselves to the discussion on the Finance Bill. We should not discuss the issues which are not totally related to the discussion, which are totally irrelevant. श्री इन्द्रजीत सिंह राव (महेन्द्रगढ़) : महोदय, मैं भूमिका बांध रहा था। सभापति महोदय (श्री पी.एम. सईद): आप फाइनेंस बिल पर बोलिए। श्री इन्द्रजीत सिंह राव : मैं फाइनेंस बिल पर बोलता हूं।

... (व्यवधान)मैडन स्पीच है, लेकिन जैसा आप कह रहे हैं, मैं वैसा ही बोल देता हूं।

SHRI INDERJIT SINGH RAO : Regarding the Finance Bill, I would like to say that the agriculturists were subjected to a lot of hardships. The destiny is controlled by the bureaucrats, by the Finance Ministers and by Governments who and which have no interest in the activities of the farmers. I am not saying that Shri Yashwant Sinha is fully responsible. He may be one among the Finance Ministers. Generally speaking, I have found that most of the Finance Ministers have a built in switch which turns off automatically whenever the demands of agriculturists are mentioned, whenever the plight of agriculturists are mentioned. Now, if the Finance Minister's switch is switched off automatically because I am talking of the agriculturists and their problems, he should manually put it back again. He does not listen but he just hears.

Now, I have to say something about agriculture and the Finance Bill. The NABARD has been created for the agriculturists. The Reserve Bank is there for everybody. But what strikes at the root of the agriculturist is this. When a business house or a business man takes a loan from the banks, the banks are entitled to write it off treating it as bad debt. He does not have to pay. They feel that this is a non-recoverable loan and, therefore, it should be written off. There are umpteen number of such cases. But if the agriculturist takes a loan, he has to pay it through his nose. Take the case of Shri Devi Lal.

  हमारे प्रान्त के थे, वे डिप्टी प्राइम मनिस्टर बन गए। उन्होंने एनाउन्स किया, फार्मर्स ने उनकी बात मानी। उन्होंने कहा कि तुम्हारे कोआपरेटिव्स के लोन हम माफ कर देंगे। माफ भी हो गए थे। लेकिन आने वाले समय में कया हुआ कि जब ब्युरोक़ेसी प्रिवेल हुई, तो लोगों को नाक से पैसा देना पड़ा, सिर्फ इन्टरैस्ट माफ हुआ, लोन माफ नहीं हुआ।

Why is this discrepancy there between the agriculturist and the business people? I want to know about it. It is not only this.

Under the Wealth Tax Act, a lot of sops have been given in this Finance Bill to the industry who were supporting the BJP in the elections.

  हरेक आदमी अपनों की बात करता है, इन्होंने भी अपनों की बात की है तो कोई बात नहीं है। हमारे यहां एक कहावत है कि अगर अपना गिराएगा भी तो अपना होने के नाते कम से कम रेत में गिराएगा।

Should it be at the expense of agriculturists? Should not the agriculture also be given a little bit of Government's attention? Under the Wealth Tax Act -if the Finance Minister would be so kind to listen to it -- under Section 2(e)(a), agricultural land within eight kilometres of a Municipal Committee or a Cantonment Board is brought under the definition of capital assets thus attracting wealth tax by issue of a notification by the Central Government. The Capital Gains Tax is also chargeable on such land under Section 2(xiv) of the Income-Tax Act.

Most of the parts of Haryana comes under the National Capital Territory Region. If the agriculturists are at a distance of eight kilometres from a municipality, they are charged Capital Gains Tax if they sell their land. A farmer who ekes his living on his two acres, three acres or four acres of land because of industrialisation, because of the country becoming better financially, when the price of his land increases, he is asked to pay the Capital Gains Tax. It is not the same in case of an industry. That is what hurts the most. If in an urban area, an industry picks up on a piece of agricultural land and within three years, Mr. Finance Minister, if we were to construct an industry in that piece of land, we will not be charged the Capital Gains Tax. Maruti Udyog has a big factory in Haryana. It comes in my constituency. One thousand acres of land were taken from the farmers for this industry. Today, only a portion of land is being used for making a mechanised car. If today, they want to sell 500 acres of land at a profit, they will not be charged Capital Gains Tax. But a farmer, as an individual, has to pay the Capital Gains Tax if he sells his land. Not only that. If an agriculturist has to pay the Capital Gains Tax and if he is to prevent the tax from going into the kitty of the Finance Minister, he has to buy another piece of land in lieu of the land that he sold. And when the time comes to sell it, to make some money and lead a happy life, he has to pay a portion of it to the Government. What is this? This is nothing but buying a land in lieu of the land sold to prevent oneself from getting charged under the Capital Gains Tax. This benefit is only available to an individual and not to a HUF. In the whole of the country, people live under the HUF. A father is a member of the HUF, a son is a member of the HUF, and a grandson is a member of the HUF. But this benefit is not available to a HUF. I do not know why this has not been brought into Parliament before.

The BJP talks about the Common Civil Code. But they do not talk about the HUF. Under the HUF, a Hindu is entitled to derive taxation benefits. He gets less taxed. The BJP Government does not mention this. I do not know why this has not come out.

Now, I will digress a little.

What I was speaking was about the agricultural land and capital gains things. What is surprising, Mr. Minister, is that the agricultural land which is situated in municipal areas with a population of upto 10,000, in the last census, are exempt under the wealth tax for capital gains. But a panchayat, not a municipality, which has a population of 40,000, and if it is within eight kilometres of a town, people in that area have to pay Capital Gains Tax. Is it not unjust? Smallest hamlets of even 180, 200, 500 people living in villages -- most of Haryana comes under the 80 kilometres of your National Capital Territory Region -- if there are 150 hamlets, they have to pay Capital Gains Tax on that land.

MR. CHAIRMAN :Please conclude now.

SHRI INDERJIT SINGH RAO: Sir, these are the things which I wanted to highlight. I thank you very much for the time that you have given to me and I hope, the hon. Finance Minister would be able to through light on the points which I have raised. Thank you.

">SHRI S. MALLIKARJUNIAH (TUMKUR): Mr. Chairman, Sir, I support the Finance Bill, 1998.

SHRI S. MALLIKARJUNAIAH (TUMKUR) : Mr. Chairman, Sir, I rise to support the Finance Bill, 1998-99.

MR. CHAIRMAN : Why don't you speak in Kannada? Interpretation facility is available.

* SHRI S. MALLIKARJUNAIAH : Oh, thank you, Mr. Chairman.

Sir, I appreciate and wholeheartedly support the Finance Bill, 1998-99. Filling the income tax form was a burden to the tax payers. This has been made very simple in this Bill. This is a welcome step and I congratulate the Hon'ble Minister for this. But at the same time I would like to ask the Hon'ble Minister as to how the assessees are trated by the Inspectors and the assessing authorities. Is there any change in the attitude and approach of these Inspectors and assessing authorities. The assessees are the wealth of this nation. They pay a part of their earnings to the Government. This feeling must be there always in the minds of officers. hence it is very essential to inculcate a refind a cultured approach in the attitude of these officerss. it is true that there are some very good inspectors. But many of them create problems to assessees unnecessarily. They ask them to come to income tax office again and again. Now, the new Government has taken over. But the staff members remain the same. We are curious to know whether there is any change in the attitude of these staff members. Assessees are human beings like others. They deserve better btreatment by the Inspectors and assessing authorities. Many associations and other organisations send representations to the Minister. The Minister has discussed with these people to sort out their income tax problems. This attitude of the Finance Minister is highly appreciable.

There is huge amount of black money in our country. The entire loan of the World Bank can be cleared tapping this black money. _____________________________________________________________________  * Translation of the Speech originally delivered in Kannada.

I request the Hon'ble Minister to come out with concrete proposals to unearth black money. It should be a very successful project. All the black money which is hidden shall have to be unearthed. A very substantial amount of India's money is in the Swiss Bank. But I do not know the steps taken by the Government of India to bring out this huge amount of money.

Sir, the amount that is allocated for the development of constituency of a member is only one crore. This is not at all sufficient. Here the members of Parliament supervise the progress of the work directly. Quality of work does not suffer. I therefore urge upon the Hon"ble Finance Minister to enhance this amount to at least two crores. The Government of India is spending money for various projects. They are releasing funds to PWD, Zila Parishad, Taluk Panchayat, Mandal Panchayat and other organisations. In the case of MP fund the entire amoutn is spent directly and the work is compelted according to the stipulated time. The concerned dealing persons in the planning section should give correct information to the MPs.

Lesser the rate, better the collection. Hence there should not be heavy taxation. It should be minimum and simple. Then only the tax money can flow to the treasury easily.

There are three lakh practitioners and if you include clerks, typists and their other dependants the total strength would be ten lakhs. These practitioners have registered their names under the Income Tax Act, 1922, Section 288(2). Income Tax Rules 50 to 58 also provide specifications about the practitioners. Hence, there should not be any apprehension about the functioning of these tax practitioners. They come directly under the control of the Commissioner of Income Tax. If they are not properly presented, if there are any lacunae, if there are any loopholes, they are liable to be prosecuted and their names will be cancelled from the list and they will be blacklisted. Therefore the question of misuse of power does not arise. There are eight to ten rules regarding them and their duties. Recently 44 AB and AF have been introduced and there is restriction on these practitioners. Now, it says, only Chartered Accountants should audit. This system should go and the old method of auditing should continue. Even if the accounts of a Chartered Accountant are doubtful, they will be referred to some other Chartered Accountant for reauditing. In the same way even in the accounts of Income Tax practitioners, if there are any lacunae they can also be referred to others. Hence, I say that it is not proper to differenciate tax practitioners from Chartered Accountants.

There is heavy taxation on alluminium industry during the current financial year, 1998-99. There are several well established alluminium industries in the country and all of them are affected very badly due to heavy taxation. My humble submission to the Hon. Minister through you Sir, is to rescue this industry by reducing the taxes with immediate effect.

Regarding coir industry many of my friends from Kerala have explained the plight of that industry. There are a number of industries in Karnataka. Increase in duty this year has given a rude shock to the coir industry. Coir industry is an industrial industry. It provides jobs to several lakhs of people particularly those who live in rural areas. Therefore, I request the Hon. Finance Minister to reduce the duty on coir industry without any further delay.

Sir, the Centre should take immediate steps to provide water to Tumkur from Kumaradhara river. It appears that the State Government is not interested in this matter. This district is a drought prone area. Poverty is rampant and even drinking water is not available to the people particularly those who live below poverty line. There is no water in the tanks. Coconut and arreca nut trees are drying up and there is no proper yield from these trees for the last ten years. The Water in Kumardhara river which is flowing towards west should be diverted towards east. This would enable the whole of Tumkur district to get water. People have already expressed their anger about the delay in this work.

There is diversion of water near Navile Tunnel and drinking water is not available to the people of Tiptur. Water is not reaching Bugadanahalli in Tumkur district. The State Government is not at all worried about the serious problem of drinking water in Tumkur district. Hence, the Centre should come forward to help the people and save them from distress. I request the Centre to construct a dam across Kumardhara river and to provide water through canals to the entire district of Tumkur.

Sir, before I conclude let me request the Hon'ble Finance Minister once again to allow the tax practitioners to continue with their profession of auditing without any restriction. I believe the Hon. Minister will look into this serious matter and protect the tax practitioners of this country.

Sir, I thank you for giving me this opportunity to speak and with these words I conclude my speech.

">SHRI G.M. BANATWALLA (PONNANI): Mr. Chairman, the Finance Bill is under consideration. The underlying budgetary proposals and the fiscal policy were discussed during the general debate on the Budget. So, I will not go into them but come directly to the proposals contained in the Finance Bill.

At the outset, I must refer to the hike in the excise duty. The hike in excise duty is expected to bring in an additional Rs.5,900 crore. I submit that this would create inflationary pressures in our economy. The hike in excise duty on petroleum, that is motor spirit, from twenty per cent to thirty per cent would only fuel inflation. Even a cup of tea, as has been pointed out, has not been spared. The common man's drink has not been spared. We have the example of packaged tea where the duty has gone up from zero per cent to eight per cent. It is very strange. We have a very strange Finance Bill. In the case of import of whiskey, vodka and beer, the basic customs duty has been reduced by fifteen per cent.

SHRI YASHWANT SINHA: Shri Banatwalla, you may please yield for a moment.

This is a fact that these duties had been reduced but we had to do it because we had to fall in line with the GATT-bound rates. That is a commitment which this Government did not make but which the previous Government had made. (Interruptions) In order to be in uniformity with the ... (Interruptions)

PROF. P.J. KURIEN:Do you accept that commitment? Or, would you withdraw from that?

SHRI YASHWANT SINHA: I said, we are paying for the sins committed by others.

PROF. P.J. KURIEN: Why do you not consider withdrawing from that?

SHRI YASHWANT SINHA: Are you making this suggestion on behalf of your Party?

PROF. P.J. KURIEN : I am replying to you. I am asking you a question; not that I am making a suggestion.

MR. CHAIRMAN : He is also asking you a counter-question.

PROF. P.J. KURIEN: I am not a Minister to reply.

MR. CHAIRMAN: Okay, Shri Banatwalla may continue.

SHRI G.M. BANATWALLA : Sir, this should not take away my time.

MR. CHAIRMAN: Yes, I know that.

SHRI G.M. BANATWALLA: Special excise duty, as I said, on these items has also been withdrawn. What I say is, please do not indulge into making political scores. Please look at the position that emerges from the Finance Bill. We have cheaper vodka, cheaper whisky, cheaper beer and dearer cup of tea! That is what I am pointing out. Who is responsible for this?

You may have your duel later on, but then, we, the common people, are the sufferers and such is the Budget that we have. You could have been careful on the point of at least yielding to the question of the package of tea.

Mr. Chairman, Sir, are the spectacle lens a luxury? The duty on this goes up from zero per cent to five per cent; it is not merely on lens, but also on frames. He does not want me to even look at him! The duty on this also goes up from zero per cent to eight per cent. They do not want that we should even consult our notes or look at the Finance Minister. What is all this?

Duty on medical equipment is increased from five per cent to eight per cent. Duty on the preparation of meat, fish, etc., has been increased from zero per cent to eight per cent. Duty on certain articles of plastics which are household articles has been increased from zero per cent to five per cent. As has been pointed out, duty on snacks and sweat meats has been increased from zero per cent to eight per cent. Spices, butter, cheese, etc., have received the wrath of the Finance Minister.

Of course, there is a good proposal there also for which I congratulate the Government. There is a proposal to set up an authority for advance tax rulings for excise and customs. This is a welcome proposal because the foreign investors will know in advance their liabilities with respect to the indirect taxes. This will remove a lot of uncertainties.

There is a service tax of Rs.1,000 per animal on the slaughter of bovines and mechanised slaughter houses. I wonder whether this service tax on the slaughter of bovines represents an item in the hidden agenda of the Government! I respectfully submit that this service tax is the most ill-advised one, it is outrageous, it will have a disastrous and a crippling effect on the meat industry. It is also a retrograde levy because it will have an adverse impact on the modernisation of slaughter houses. It is an anti-poor tax. The consumers of bovine meat are largely drawn from the down-trodden, under-privileged, working people, the Scheduled Castes, the Scheduled Tribes, the minorities, etc. These are facts from which one cannot run away.

Valuable animal by-products are obtained at the time of slaughter and a large number of industries depend upon them.

You can, therefore, understand the disastrous effect of service tax. I will come again to the House with my amendment on this proposal but I hope that the Finance Minister will respond and withdraw the service tax in the interest of the industry.

A hardship is being done to the NRIs also. As we know the status of non-ordinary residents is proposed to be deleted. One aspect of the hardship should be considered. We are all inviting the NRIs and then creating hardships also. Mr. Chairman, people who go abroad for work and then return after a long time were earlier allowed to earn income on their investments made outside India for a period of nine years. That income was not taxed in India. The benefit would no longer be available now. Here, I am not going into the aspect of double tax. I only wish that the Finance Minister does not come harshly upon the people who had gone abroad for work and now continue to receive some amount from their investments.

Mr. Chairman Sir, take the question of one out of six parameters like phones etc.for filing returns. Now, two more parameters have been added. It has been further provided that if a person has satisfied even one of the parameters instead of two parameters, he will have to file the return compulsorily. No doubt, it is an attempt to widen the tax net. But it is better to go after the sharks rather than trying to create hardships for the common people.

19.57 hrs (Mr. Speaker in the Chair) Sir, medical and educational institutions which are not for profits are at present exempted from income tax. This exemption is sought to be withdrawn. I do understand that they are to go under Sections 11 and 12 as charitable trusts but then that requires Government notifications and so on and so forth. It will only result in greater and greater hardships.

Mr. Speaker Sir, gifts will henceforth be considered as income in the hands of the recipient. It is proposed to repeal the Gifts Act and the gifts will be treated as income from other sources. Now, even when there is a release of a debt, that is also considered as an income. I owe certain money and the person is good enough to release me of the debt which I had taken some time back and I had already spent it as per my necessities. Today, I am released of the debt. You are coming upon me harshly and considering it as my income, subject to taxation. I do understand that there may be certain misuse of these provisions but then let us come harshly upon the misuse rather than punish the genuine cases.

Sir, an aggregate amount of receipts up to Rs.30,000 per year are proposed to be exempted. I have an amendment to say that the limit should be increased to Rs.2 lakh.

Then gifts on marriages are exempted only upto Rs.2 lakh. Any further gift beyond Rs.2 lakh will be considered as income from other sources subject to taxation. Why are you after marriages also making them bitter?

20.00 hrs. Let us have some consideration. These days, an amount of Rs. 2 lakh has no meaning. Some small items are given at the time of marriages. I believe, the limit should be increased to Rs. 5 lakh.

There is an increase in the fees for filing of appeals. Now, especially in the case of small assessees, there will be a hardship. I respectfully submit that justice should not be denied by raising the cost of filing appeals.

There are several points. But I do not want to hold up the House for the same. Before I conclude, I must refer to the position in Kerala. Unfortunately, this State is getting a lot of injustice.

MR. SPEAKER: If the hon. Members agree, we can extend the time of the sitting up to 9 p.m. SEVERAL HON. MEMBERS: Yes.

MR. SPEAKER: So, the time of the sitting is extended up to 9 o'clock.

SHRI G.M. BANATWALLA (PONNANI): The Central investments in Kerala are at a pitiably low level. These are on the decline. They are the lowest of all the States except some North-Eastern States. The Central investments in Kerala at the grass block level is hardly 1.40 per cent of the total investments. If we compare with the total Central investments in all the States, we find that the Central investment in Kerala is hardly 1.40 per cent. What is the situation then? The situation concerning employment and unemployment is clear that in the total employment, the percentage share of Kerala is hardly 1.58 per cent, that is, next only to some of the North-Eastern States.

The Central investments in Kerala are on the decline. In 1975, the share of the Central investments in Kerala, when compared to the total Central investments, was 3.24 per cent, that is, almost equal to the percentage share of population of Kerala in the total population of the country. From 3.24 per cent, it has declined continuously. Today, it has come to hardly 1.6 per cent. I would, therefore, very much urge upon the Government to consider this serious situation also. They should respond to this serious situation by correcting the imbalances that are there in our economy.

With these words, I hope that the Minister of Finance will respond positively. I am very much encouraged by the fact that while I was speaking, at least, neither did he nod his head nor did he even shake his head. So, I expect that some positive response will come from him to the points that have been raised here.

"> श्री शैलेन्द्र कुमार (चैल) : माननीय अध्यक्ष महोदय, आपने वित्त विधेयक पर मुझे बोलने का अवसर दिया, उसके लिए मैं आपका आभारी हूं। हमारे माननीय वित्त मंत्री श्री सिन्हा साहब बैठे हुए हैं, उनके समक्ष मैं कहना चाहूंगा कि भारत में ८० प्रतिशत लोग गांवों में बसते हैं। ७६ प्रतिशत लोग खेती पर निर्भर हैं। जब से यह बजट पेश हुआ है तब से सभी सम्मानित सदस्यों ने देखा होगा कि पूरे देश में महंगाई चरम सीमा बढ़ी है। अगर ध्यान से देखा जाये तो मध्यम वर्ग के यूज में आने वाली वस्तुएं आपने महंगी की हैं और जो उच्च वर्ग के लोगों के यूज की वस्तुएं हैं, उनको आपने सस्ता किया है। भारत वर्ष में ७६ प्रतिशत किसान ग्रामीण क्षेत्र में वास करते हैं। उनकी सिंचाई, खाद तथा कृषि उपकरण से संबंधित कई ऐसी सुविधायें हैं जिनकी तरफ आपको बड़ी गंभीरता से ध्यान देना होगा। गांव की पूंजी जो शहरों की ओर बहुत तेजी से जा रही है, उस पर रोक लगानी होगी। आज किसान कड़ी मेहनत मशककत के बाद भी अपनी उपज का सही मूल्य नहीं पा रहा है। उसे जो सुविधायें मुहैया होनी चाहिए, वे भी नहीं मिल पा रही हैं। आप देखें कि जो किसान ऋण लेता है चाहे वह ग्रामीण बैंक से लेता हो या सहकारी बैंक से, उन पर बहुत बोझा हो जाता है। वे ऋण की अदायगी नहीं कर पाते हैं तथा उन्हें ऋण लेने में भी कठिनाई होती है। आज ब्याज की दरें भी बढ़ी हैं। इसलिए मैं चाहूंगा कि ब्याज की दरें कम हो तथा उन्हें ऋण आसानी से मुहैया हो ताकि वह अपना उत्पादन बढ़ा सकें।

  अध्यक्ष महोदय, हमें एक बात और कहनी है कि एक वकत ऐसा था जब किसान ने आलू का उत्पादन काफी किया लेकिन वे सारे सड़ गये जिससे उनको उसका मूल्य नहीं मिल पाया। आज आलू की कीमत कितनी बढ़ गई है, यह आप जानते हैं। माननीय मंत्री जी ने एक टी.वी. इंटरव्यू में कहा था कि सब्िजयों पर कर नहीं लगाया गया, यदि सब्िजयों का मूल्य बढ़ा है तो उसमें हमारी कया जिम्मेदारी है? ये तमाम बातें चाहे वह खाद्य संस्करण या कृषि मंत्रालय से संबंधित हों, सरकार को उसमें चिन्ता करनी चाहिए। आज आपने देखा होगा कि चाहे मिठाइयां हों, दूध हो, नमकीन हो, मसाले या चाय हो, तमाम चीजों पर कर बढ़े हैं। इन पर हमें कर कम करना होगा कयोंकि ये सभी चीजें हमारे मध्यम वर्गीय परिवार की यूज की चीजें हैं।

  आपने व्यकितगत आय कर मुकत सीमा को ४० हजार से बढ़ाकर ५० हजार किया है। आज आप महंगाई की मार को देख रहे हैं कि पूरे भारत वर्ष में चाहे मजदूरी की या दूसरे उत्पाद की चीजें हों, उन सबकी कींमतें बढ़ी हुई हैं। यदि एक व्यकित अपने मकान का निर्माण करता है, तो उसमें लगने वाली तमाम चीजों के दाम में भी बढ़ोत्तरी हुई है। इसलिए मैं मंत्री जी से मांग करता हूं कि व्यकितगत आय कर की मुकत सीमा को ५० हजार रुपये से बढ़ाकर ७० हजार रुपये कर दें। बहुत से माननीय सदस्यों ने अपनी बात यहां रखी है। मैं एक बात और कहना चाहूंगा कि आज नये संसद सदस्य के रूप में हम दिल्ली आये हैं। आज तक हम जिन जनपदों या राज्यों में रहते थे वहां भी हमने खर्च की सीमा देखी है। यहां आकर सभी सम्मानित सदस्यों के खर्चे बढ़े हैं। मैं आपसे निवेदन करना चाहूंगा कि यदि हमें देश की राजधानी दिल्ली में वास करना है तो माननीय संसद सदस्यों के वेतन भत्तों, उनकी सुख-सुविधाओं को बढ़ाया जाये ताकि हम लोग एकत्र होकर जनता की समस्याओं को यहां रख सकें। यदि खर्च ज्यादा होगा तो हम अपनी बात फ्री माइंड से नहीं कर सकते। इसी तरह सांसद नधि का पैसा है। हमारे उत्तर प्रदेश में जो बजट प्रस्तुत हुआ है उसमें सभी विधायकों को ५० लाख रुपये नधि में दिये गये हैं। हम पांच विधान सभा क्षेत्रों से चुनकर आते हैं परन्तु हमें १ करोड़ रुपये मिलता है। यह पैसा बहुत कम है। यदि आप १ करोड़ प्रति विधान सभा क्षेत्र को दें तब जाकर विकास की बात हो सकती है। मैं मांग करता हूं कि अगर आप कुछ नहीं बढ़ा सके तो एक करोड़ रुपये से बढ़ाकर कम से कम दो करोड़ रुपये कर दें। ऐसा सम्मानित सदस्यों ने कहा है लेकिन हमारी मांग प्रति विधान सभा क्षेत्र कम से कम एक करोड़ रुपये की है।

... (व्यवधान) दूसरी महत्वपूर्ण बात बताना चाहूंगा जो सभी माननीय सदस्यों की समस्याओं से जुड़ी हुई है। प्रश्नकाल, शून्यकाल, नियम ३७७ में तमाम सदस्य अपनी प्रौबल्म यहां पर उठाते हैं। जब हम भारत सरकार द्वारा राज्य सरकारों को बजट भेजते हैं, हमारी कौन्सटीटूऐंसी में तमाम योजनाएं होती हैं चाहे वह सुनश्िचत रोजगार योजना हो, इंदिरा आवास हो या पेयजल त्वरित योजना हो, तमाम ऐसे बजट केन्द्र सरकार से जाते हैं लेकिन जब डिस्टि्रकट में बैठक होती है तो सम्मानित विधायक एक ही बात कहते हैं कि आपको तो एक करोड़ रुपये मिलते हैं। हमसे न ही पूछकर कोई काम किया जाता है, न ही कोई सुझाव लिया जाता है और न ही कोई भागीदारी होती है। इसलिए निवेदन करना चाहूंगा कि जो पैसा आप केन्द्र सरकार से राज्य सरकारों को भेज रहे हैं, उस पर माननीय संसद सदस्यों के सुझाव और कम से कम उनकी भागीदारी सुनश्िचत होनी चाहिए। अभी हमारे उत्तर प्रदेश के बहुत से इंडस्टि्रयलिस्ट इकट्ठे हुए थे। उस बैठक में अग्िनहोत्री जी भी गए थे। उत्तर प्रदेश के सभी मैम्बर ऑफ पार्िलयामैंटस को बुलाया गाया था। उन्होंने कई बिन्दुओं पर बात कही कि चाहे विधान सभा हो या लोक सभा, वहां पर आप घोषणाएं कर देते हैं लेकिन वे इम्प्लीमैंट नहीं हो पातीं। इसलिए मैं चाहूंगा कि उद्योग लगाने के लिए जो भी संसाधन हों, उन्हें हमको बढ़ावा देना चाहिए और उनकी बातों की तरफ ध्यान देना चाहिए। एक बहुमूल्य बात जो सरकार से संबंधित है, कहना चाहूंगा। जैसे आप अन्य खचर्ों में मितव्ययिता बरत रहे हैं, उसी प्रकार उत्तर प्रदेश सरकार की ओर मैं आपका ध्यान दिलाना चाहूंगा कि वहां पर जैम्बो जैट मनिस्ट्री बनी है। अग्िनहोत्री जी, आप पढ़ें तो पता लगेगा कि उनके खान-पान, चाय, साज-सज्जा, रख-रखाव पर इतना खर्चा आ रहा है जिसका कोई हाल नहीं है। अभी मैंने देखा कि हमारे माननीय मुख्य मंत्री जी दो-तीन दिन पहले माननीय प्रधानमंत्री जी से के पास विकास संबंधी कुछ बजट मांगने   आए थे। अच्छा होता यदि यदि वे उत्तर प्रदेश के सदस्यों को भी बुलाते। हमारी बात सुनते तो अच्छा होता। हम भी उनको सुझाव देते। इसी प्रकार से निर्जीव या बंद होने के कगार पर जो बहुत सी फैकटि्रयां हैं, उनके पुनर्जीवन के लिए आपने कुछ धन की व्यवस्था की है। हमारे यहां इलाहाबाद, उत्तर प्रदेश में के.वी. फैकट्री बंद होने के कगार पर है। आई.टी.आई. भी बंद होने के कगार पर है, बी.पी.सी.एल. फैकट्री बहुत घाटे में चल रही है। उनके लिए आपने जो व्यवस्था की है, उसपर और बजट बढ़ाने की बात है। किसानों से संबंधित जो डीजल, मिट्टी का तेल या पैट्रोल है, उनके दामों में बढ़ोतरी की और बाद में दाम घठाए, यह बहुत अच्छा किया है। लेकिन मैं कहना चाहूंगा कि कम से कम मिट्टी के तेल में कर कम करें ताकि किसान, जो पम्िपंग सैट लगाकर या अपने ट्रैकटर चलाकर अपने खेत जोतते हैं, उनको फायदा हो सके। इसलिए डीजल पर भी उत्तर प्रदेश सरकार ने एक रुपया और अतरिकत कर बढ़ाया है जिससे किसानों पर ज्यादा बोझ पड़ा है। डाक को एक रुपये से बढ़ाकर डेढ़ रुपये किया गया है। तमाम गरीब जनता जो लिफाफे में पत्र नहीं लिख सकती, पोस्ट कार्ड से पत्राचार करती है। अभी कई सदस्यों ने कहा कि जरूरतमंद रोजमर्रा की वस्तुएं चाहे मकखन, पनीर या घी हो, उनपर एकदम ८ प्रतिशत कर बढ़ा दिया गया है। दूसरी तरफ फल, मोटर स्प्रिट, आइसक़ीम पर १८ प्रतिशत, ३५ प्रतिशत तमाम ऐसे कर बढ़ाए हैं। इस ओर विशेष ध्यान देना चाहिए। जहां तक मुकदमे के शुल्क को २५० रुपये से बढ़ाकर १,००० रुपये करने की बात है, उससे गरीबों को नुकसान होगा लेकिन बड़े लोगों को फायदा होगा। लद्दाख में निवास करने वाले अनुसूचित जाति के सदस्यों को आय कर में छूट दी गई है। मैं गुजारिश करूंगा कि इसी प्रकार नोर्थ ईस्ट में भी और कम से कम उत्तर भारत में भी अनुसूचित जाति के लोगों पर अगर आप कर कम करते तो बड़ा अच्छा होता। इन्हीं शब्दों के साथ मैं अपनी बात समाप्त करते हुए माननीय मंत्री जी से आशा है कि मैंने जो सुझाव दिये हैं, उन पर विशेष ध्यान देंगे। इस बढ़े हुए कर और इस विधेयक का मैं विरोध करता हूं। (इति) "> श्री श्याम बिहारी मिश्र (बिल्हौर) : माननीय अध्यक्ष जी, मैं इस पवित्र सदन में माननीय वित्त मंत्री जी द्वारा प्रस्तुत वित्त विधेयक का समर्थन करने के लिए खड़ा हुआ हूं। सबसे पहले मुझे देहात की एक-दो कहावतें याद आ रही हैं, जैसे ठभई गति सांप छछूंदर केरी", हमारे उत्तर प्रदेश में यह कहावत बहुत ज्यादा प्रचलित है। दूसरी हैठगुड़ भरी हंसिया है, न उगलते बनता है, न निगलते बनता है", पर ऐसा हो कयों रहा है। आज हमारे वित्त मंत्री श्री सिन्हा जी एक विषम स्िथति में हैं, कयोंकि पूर्वजों के वित्त मंत्रियों द्वारा इनको जो आर्िथक नीतियां और उनके संचालन की स्िथति विरासत में मिली है, उसको ठीक करना, उन गलतियों को और उन भूलों को, इन्हें भुगतना पड़ रहा है। मैं अपने वित्त मंत्री जी को साधुवाद देना चाहता हूं कि उन गलतियों को संभालते हुए, उनको भुगतते हुए, उन्होंने देश को एक नई आर्िथक दिशा और आर्िथक शकित के विषय में स्थायित्व प्रदान करने का काम किया है। मैं यशवन्त सिन्हा जी को इस बात में भी साधुवाद देना चाहता हूं कि जैसे ओझा भूत प्रेतों की झाड़ फूंक करता है, उसी प्रकार एक अच्छे ओझा की तरह उन्होंने भारतीय अर्थव्यवस्था पर जो पिछले प्रेत सवार थे, उनको झाड़ फूंक कर, हटाकर एक नई अर्थव्यवस्था को देश में लाने का प्रयास किया है, जिससे इस देश की अर्थव्यवस्था भूत प्रेतों से अलग होकर एक अच्छी संस्कारयुकत अर्थव्यवस्था का संचार इस देश में करे। परन्तु रोग बड़ा कठिन है, इसलिए इलाज लम्बा चलेगा। केवल १०० दिन में या केवल एक साल में पुरानी सारी भूलों का समाधान नहीं हो सकेगा। फिर भी जो प्रयास माननीय अटल बिहारी वाजपेयी जी के निर्देशन में हमारे वित्त मंत्री जी ने किया है, वह सराहनीय है और इसलिए मैं उनको धन्यवाद देना चाहता हूं। वित्त मंत्री जी ने आर्िथक रूप से एक शकितशाली देश की संरचना का आहवान किया है और केवल आहवान ही नहीं किया है, उस ओर कदम भी उठाये हैं। मैंने दसवीं लोक सभा में इसी सदन में कहा था कि महात्मा गांधी के देश में लंगोटी वाले आम आदमी को उधार की टाई, पेंट और कोट मत पहनाओ, कयोंकि वह उधार की टाई और पेंट जब वापस करनी पड़ेगी तो लंगोटी भी साथ में चली जायेगी और वह लंगोटीविहीन हो जायेगा। हम धन्यवाद देना चाहते हैं कि हमारे वित्त मंत्री जी ने उस लंगोटी वाले इन्सान की ओर ध्यान दिया है, गांव में रहने वाले उस गरीब किसान और मजदूर की ओर ध्यान दिया है।

  गांधी जी के उस लंगोटी वाले निर्बलतम और निर्धनतम व्यकित पर न केवल ध्यान देकर कृषि के ऊपर, रोजगार के ऊपर, शिक्षा के ऊपर, स्वास्थ्य के ऊपर धन का आबंटन पिछली व्यवस्था के अंतर्गत अब की बार ज्यादा किया है, यह एक ठोस कदम है। कृषि के क्षेत्र में ५८ प्रतिशत की व्ृाद्धि की गई है, नाबार्ड को शकित प्रदान कर उसकी आधारगत पूंजी बढ़ाकर अर्थव्यवस्था को मजबूत करने का काम किया है, वह सराहनीय है। गांधी जी ने कहा था कि यह देश गांवों का है। पर आज हम गांव में पचास वर्ष की आजादी के बाद जाएं तो देखेंगे कि किसान किन विषम समस्याओं और कठिनाइयों से घिरा है, उसके पास न रहने को मकान है, न पीने को पानी है, न स्वास्थ्य की सुविधा है, न ही उसके बच्चों के पढ़ने के लिए कोई स्कूल है, न उसके पैरों में जूता है और न ही सिर पर पगड़ी है। आज अगर हम इस पर आगे बढ़ें तो भारतीय जनता पार्टी का जैसा नारा था- रोटी, कपड़ा और मकान का, उसी को चरितार्थ करते हुए माननीय वित्त मंत्री ने ग्रामीण मकानों की व्यवस्था की है और शिक्षा की व्यवस्था की है, विशेष तौर से लड़कियों की पढ़ाई की व्यवस्था की है। इसके अलावा गांवों में पीने के पानी के लिए हैंडपम्पों की व्यवस्था के लिए विशेष धन का आबंटन किया गया है और भरपेट भोजन देने के लिए रोजगार की व्यवस्था की गई है। मैं इन सब कायर्ों के लिए माननीय वित्त मंत्री को बधाई देना चाहता हूं। हमारी पूर्व की सरकारों ने भी कुछ व्यवस्थाएं की थीं, लेकिन वे व्यवस्थाएं जानवरों के लिए की गई तो चारा घोटाला कांड हो गया, किसानों के लिए खाद की व्यवस्था की गई तो यूरिया घोटाला कांड हो गया। बेचारे किसान और मूक जानवरों तक वह व्यवस्था नहीं पहुंची, बीच में कुछ इनसान खा गए और उनको बदहजमी भी हो गई। आज हमारा बजट आ रहा है, उसमें इस प्रकार की व्यवस्थाओं के प्रावधान से हम आगे बढ़ेंगे। मैं इस सम्बन्ध में कुछ सुझाव देना चाहता हूं, लेकिन इसके साथ ही मैं माननीय वित्त मंत्री जी को यह भी कहना चाहता हूं कि इसमें संशोधन करने की भी आवश्यकता है। आयकर की सीमा बढ़ाई है, उत्पाद शुल्क में ३० लाख रुपये से बढ़ाकर ५० लाख रुपये किया है, सर्िवस टैकस को समाप्त किया है, मिठाई और नमकीन पर उत्पाद शुल्क समाप्त करने की बात कही, इन तमाम चीजों के लिए मैं उनको धन्यवाद देते हुए आग्रह करना चाहता हूं कि आपने चाय पैकेजिंग पर आठ प्रतिशत की एकसाइज लगाई है। चाय की पैकिंग कोई बड़े कारखानों में नहीं होती, छोटे घरों में यह की जाती है। खुली चाय लाई जाती है और उसकी वहां पैकिंग की जाती है। १९९३ में टंडन कमेटी ने रिपोर्ट दी थी जिसके आधार पर एक रुपया प्रतकिलो एकसाइज थी, वह समाप्त की गई थी। अब यह बढ़कर १२ रुपये प्रतकिलो हो जाती है। मेरा अनुरोध है कि लघु और कुटीर उद्योग को बढ़ावा देने के लिए इसको समाप्त करने का कष्ट करें। इसी तरह से पिसे हुए मसालों की पैकिंग पर आठ प्रतिशत कर लगाया है। मसाले भी कुटीर उद्योग के अंतर्गत आते हैं और गांवों में चककी में मसाले पीसे जाते हैं, कोई बड़ा कारखाना नहीं है। मेरा अनुरोध है कि इसे भी समाप्त करने का कष्ट करें। इसी तरह से दवाओं पर आठ प्रतिशत एकसाइज डयूटी लगाई गई है। दवाओं में जीवन रक्षक दवाएं भी हैं, गरीब आदमी भी दवा खरीदता है, तो जो इसमें आठ प्रतिशत का उत्पाद शुल्क लगाया गया है, उसको भी वापस लेने का काम आप करें। हमारे उत्तर प्रदेश में फिरोजाबाद में कांच का सामान बनता है। हाथ से उस पर दस्तकारी और पेंटिंग होती है। उस दस्तकारी और पेंटिंग किए हुए सामान पर आपने आठ प्रतिशत की एकसाइज डयूटी लगाई है। दस्तकारों और कारीगरों को ब्रढ़ावा देने के उद्देश्य से मैं अपेक्षा करता हूं कि इसको आप समाप्त करने का काम करेंगे। दूध डेयरी के ऊपर भी आपने आठ प्रतिशत का उत्पाद शुल्क लगाया है। यह उद्योग सीधा किसानों से सम्बन्िधत है जिसमें घी, मकखन, पनीर और दूध होता है। मैं आपसे अपेक्षा करता हूं कि इसको भी वापस लेने का कष्ट करेंगे। आपने ४० हजार रुपये की बिक़ी पर आडिट की व्यवस्था कर रखी है। इस समय महंगाई जिस हिसाब से बढ़ी है, उसको देखते हुए मैं आपसे अपेक्षा करता हूं कि यह सीमा आप ७५ हजार रुपये तक करने का कष्ट करेंगे। नकद भुगतान की सीमा आपने ३० हजार रुपये निर्धारित की है। आजकल कोई भी आदमी जब बाहर जाता है तो पांच हजार रुपये, दस हजार रुपये का तकादा लेकर बैंक से ड़ाफट बनवाने जाता है तो बैंक वाले नकद रुपया जमा करके ड़ाफट नहीं बनवाते। अगर सारी राशि लेकर चलता है, तो रास्ते में लुट जाने की व्यवस्था होती है। इसलिए इस सीमा को बढ़ाया जाना चाहिए और बैंकों को निर्देश दिया जाए कि इस प्रकार के लोग जो तकादे के हिसाब से जाते हैं, बैंक उनसे रुपया लेकर ड़ाफट देने की व्यवस्था करे। महोदय, मैं दो बातें कह कर अपनी बात समाप्त करूंगा। सुनश्िचत रोजगार योजना या जो अन्य योजनायें हैं, उन योजनाओं के विकास के लिए संसद सदस्यों से भी प्रारूप मांगा जाना चाहिए, लेकिन आज वह नहीं मांग जा रहा है। गांव, कस्बों और शहरों में आपने मकान बनाने की व्यवस्था कर दी है, लेकिन बेरोजगारी दूर करने के लिए नौकरियां नहीं मिल रही हैं। इसलिए मैं आपसे आग्रह करना चाहता हूं कि गांवों, कस्बों और शहरों में छोटे-छोटे कॉमर्िसयल काम्पलैकस बनाकर, उनमें ८ x8 फुट और 15x15 फुट की दुकानें बनाकर बेरोजगार लोगों को दुकानें खोलने के अवसर दिए जायें। एक निवेदन और करके मैं अपनी बात समाप्त करूंगा। उत्तर प्रदेश में बहुत ही लोकप्रिय सरकार ने विधायकों को अपने क्षेत्रों का विकास करने के लिए ५० लाख रुपए देने की व्यवस्था की है। इसके साथ २५-२५ हैन्डपाइप और पांच-पांच गांवों के विद्युतीकरण की भी व्यवस्था की है। इस हिसाब से देखा जाए, तो एक करोड़ रुपए जो नधि हमें मिलती है, वह कम है, जबकि सरकार की यह योजना सफल हुई है। इसलिए कम से कम इसको दो करोड़ रुपए करने की व्यवस्था करें। आप चाहें, तो एक करोड़ रुपए से जो विकास के काम हुए हैं, उनको देख सकते हैं।

  श्री राजेन्द्र अग्िनहोत्री (झांसी): यह तो माननीय अध्यक्ष महोदय पर निर्भर हैं। श्री श्याम बिहारी मिश्र : मैं अध्यक्ष महोदय से निवेदन करूंगा कि इस राशि को वे बढ़ाने का कष्ट करें। MR. SPEAKER: All Members are interested to increase this amount.

 

  श्री श्याम बिहारी मिश्र : महोदय, मैं केवल इतना ही निवेदन करूंगा कि जिस प्रकार से सरकार कार्य कर रही है, मैं उसमें एक ही बात कह सकता हूं -

  वकत आने पर हम दिखा देंगे तुझे वह आसमां,   हम अभी से कया बताएं कि हमारे दिल में कया है।

  इन्हीं शब्दों के साथ मैं आपको धन्यवाद देता हूं।

">"> श्री रघुवंश प्रसाद सिंह (वैशाली): अध्यक्ष महोदय, सदन में वित्त विधेयक पर बहस चल रही है, मैं संक्षेप में अपनी बात कहना चाहूंगा। हम लोग साधारण ढंग से जानते हैं कि कर नीति कैसी होनी चाहिए। ये लोग रामराज्य की कल्पना करते हुए कहते थे कि हम रामराज्य में भूख, भय और भ्रष्टाचार को मिटायेंगे तथा सरल, समान, समाधान करेंगे। करना था समाधान, लेकिन कर दिया कराधान।

  महोदय, मैं मूल बात में जाना चाहता हूं, नीति वही सही है जो ग्रामोन्मुखी हो। कर नीति इस तरह की होनी चाहिए जिसमें आम आदमी जिन चीजों को इस्तेमाल करता है, उसको सस्ता किया जाए और जो विलासिता से संबंधित हैं, आराम से संबंधित हैं और जिनकों बड़े लोग इस्तेमाल करते हैं, उनको महंगा किया जाए। सब चीजें सस्ती हो जाएं तो बहुत अच्छी बात है, लेकिन जिस तरह की घाटे की हमारी अर्थव्यवस्था है और खराब आर्िथक हालत है उसको देखते हुए सब चीजों को सस्ता करना संभव नहीं है। कम से कम गरीब लोग जिन चीजों को इस्तेमाल करते हैं उनको सस्ता किया जाए और जिन चीजों को बड़े लोग इस्तेमाल करते हैं उनको महंगा किया जाए। उसी तरह से कराधान भी डायरेकट और इन्डायरेकट दो रूपों में है। हम लोगों ने पढ़ा है कि कर की व्यवस्था ऐसी होनी चाहिए जैसे भंवरा फूल पर बैठता है और उससे मधु ले लेता है और उस फूल का कुछ बिगड़ता भी नहीं है। इसी तरह से टैकस का प्रावधान होना चाहिए जिससे आम गरीब आदमी पर जोर न पड़े और उन्हें तकलीफ भी न हो तथा सरकार का भी काम चले। हम लोगों के गांव में एक कहावत है - नदियक पानी न दिये जो, जो हम्मर नुंगा सुखैले जो। जिस तरह से भीगा हुआ कपड़ा सूख जाता है और पानी भाप बनकर उड़ जाता है, उसी तरह से जनता से टैकस लिया जाए और वह टैकस भी जनता पर ही खर्च किया जाए। उसी नीति पर हम सभी चल रहे हैं, लेकिन जो वित्त विधेयक है उसको देखने से पता चलता है कि जो वस्तुएं गरीबों द्वारा इस्तेमाल होती हैं उनको महंगा किया गया है और कर भी बढ़ाया गया है।

  जो बड़े लोगों के इस्तेमाल की वस्तुएं हैं उन पर कर घटाया गया है, बल्िक कर खत्म कर दिया गया है। ये कहते हैं कि हम चीजें सस्ती कर रहे हैं। हम बाहर से मंगाएंगे उन पर कोई कर नहीं होगा। शराब आएगी उस पर कर नहीं होगा और चाय पर कर होगा। सारे वकताओं ने कहा है, हम इस पर आपका ध्यान आकृष्ट करना चाहेंगे कि इस वित्तीय प्रावधान और वित्त विधेयक के लागू होने से देश में गरीबी, गैर बराबरी, बेरोजगारी बढ़ेगी, महंगाई बढ़ी है तथा और बढ़ेगी, रूकेगी नहीं।

  महोदय, हम हिन्दुस्तान की जनता को सावधान करना चाहते हैं। अटल बिहारी वाजपेयी जी की हुकूमत हुई। लोगों ने बड़े-बड़े सपने देखे थे, मीडिया ने बड़ा प्रचार किया था कि अटल जी को मौका दिया जाए, यह बड़ा सुधार करेंगे। लेकिन महंगाई और इनके बजट प्रावधान को देखते हुए तथा जो गरीबों की तकलीफ बढ़ी है उनको देखने से पता चलता है, अब सभी लोगों का भ्रम टूट गया है कि यह सरकार भी बेकारी, महंगाई और बेरोजगारी बढ़ाने वाली है। आप भूख, भ्रष्टाचार को खत्म करने की बात कहते हैं, यह महंगाई घटाने वाले नहीं हैं बल्िक बढ़ाने वाले हैं तथा और बढ़ा कर रहेंगे, ऐसा मुझे लगता है।

  महोदय, मैं बिहार के संबंध में कहना चाहता हूं, बिहार के साथ बड़ा अन्याय हो रहा है। बिहार की लोग हंसी उड़ाते हैं, शिकायत होती है और बदनामी भी होती है। सब लोग एक-दूसरे पर आरोप लगाते हैं कि राजनीति लोग एक-दूसरे के खिलाफ करते हैं। यदि हिन्दुस्तान में बिहार पीछे छूट जाएगा तो कया हिन्दुस्तान आगे बढ़ सकता है, नहीं बढ़ सकता है। जब इस देश का एक बहुत बड़ा भूभाग पीछे छूट जाएगा तो हिन्दुस्तान आगे नहीं बढ़ेगा। लेकिन सारी खराबी के बाद बिहार को यह गौरव प्राप्त है कि बिहार में रीज्नलिज़म नहीं है और बिहार समझता है कि हम हिन्दुस्तानी हैं, हिन्दुस्तान को आगे बढ़ना चाहिए। अगर आप बिहार का इकोनोमिक इंडीकेटर देखेंगे तो बिहार में ५४ फीसदी लोग गरीबी रेखा से नीचे हैं। ८६ लाख परिवार गरीबी रेखा से नीचे हैं। पर केपिटा इनकम देश भर में सबसे कम है। सीडी रेश्यो सबसे कम है, ३४ से घट कर २७ प्रतिशत हुआ, जब कि देश का नेशनल एवरेज ६० फीसदी है। इस प्रकार सारे इकोनोमिक इंडीकेटर को देखने से पता चलता है कि बिहार को विशेष स्पेशन केटेगरी में जाना चाहिए। देश की जो स्िथति है और जो आपका गाडगिल फार्मूला लागू होता रहा, फाइनेंस कमीशन के मुताबिक जो खर्चा होता रहा उससे बिहार में गरीबी, गैर बराबरी, बेकारी बढ़ी है और सारी समस्याएं वहां पर हैं। बिहार राज्य वित्तीय संकट में चल रहा है।

  महोदय, यशवंत बाबू वहां के हैं, उनकी मैं प्रशंसा करता हूं। हमने बिहार की प्रशंसा की है कि वहां रीज्नलिज़म नहीं है। लेकिन इन्होंने अभी तक एक बार भी बिहार की हालत कुछ सुधरे, उनकी कया कठिनाईयां हैं, समस्याएं हैं उनको देखने का काम नहीं किया है। यह बिहार को हमसे कम नहीं जानते हैं बल्िक ज्यादा जानते हैं, लेकिन अभी तक कोई उपाय नहीं हुआ है। मिसाल के तौर पर केन्द्रीय सरकार के उपक़मों का पैसा बिहार पर बाकी है। १२०० करोड़ रुपए पांच वषर्ों में सेंट्रल असिस्टेंस जो मिलता है उसे काट लिया गया है। पांच वषर्ों में क़म-क़म से १२०० करोड़ रुपया भारत सरकार का जो उपक़म है उसका बिहार के उपक़मों पर बाकी है, उसे काट लिया गया है।

... (व्यवधान)

  श्री राजेन्द्र अग्िनहोत्री (झांसी): किस सरकार ने काट लिया।

... (व्यवधान)

  श्री रघुवंश प्रसाद सिंह : हम सभी सरकारों के लिए कह रहे हैं।

... (व्यवधान)

  श्री श्याम बिहारी मिश्र : बिहार में और यहां पर आपकी सरकार थी तो आपने यह कर्जा कयों नहीं अदा कराया।

... (व्यवधान)

  श्री रघुवंश प्रसाद सिंह : मैं जनता की और राज्यों की बात कह रहा हूं, उसमें चाहे यह सरकार हो या वह सरकार हो। हम जनता के लिए कमटिड हैं और खास कर गरीबों के लिए कमटिड हैं। चाहे कोई भी सरकार आए, उनके लिए हम उनसे मुकाबला करेंगे।

  बिहार के उपक़मों का भारत सरकार के उपक़मों पर १७०० करोड़ रुपया बाकी है। यशवंत बाबू वित्त मंत्री हैं, आप ही बताएं कि कया यह बिहार के साथ न्याय है? कया बिहार को न्याय नहीं दिया जा सकता है। बिहार में ९ करोड़ लोग रहते हैं और आज बिहार आर्िथक संकट से गुजर रहा है। उसे न्याय नहीं मिल रहा है। उस पर जो १२०० करोड़ बकाया है वह काट लिया गया लेकिन उसका १७०० करोड़ जो बकाया है वह नहीं दिया है। मैं सभी बातें विस्तार से बताना चाहूंगा। हिंदुस्तान फर्िटलाइजर कॉरपोरेशन, बरौनी, पर २७ करोड़ बाकी है, हैवी इंजीनियरिंग कॉरपोरेशन पर १४८ करोड़ बाकी है, सेट्रल फील्ड कोल पर १६४ करोड़ बाकी है, भारत कोकिंग कोल पर १०९२ करोड़ बाकी है, ईस्टर्न कोल फील्ड पर २०१ करोड़ बाकी है। इस तरह से १७०० करोड़ बाकी है। लेकिन भारत सरकार ने जोर-जबरदस्ती से बिहार को मिलने वाली केन्द्रीय सहायता से १२०० करोड़ रुपया पांच साल में काटने का काम किया है, लेकिन बिहार का जो १७०० करोड़ रुपया बकाया है वह देने का काम नहीं किया है। इसी तरह से दसवें वित्त आयोग द्वारा राज्य की पंचायतों राज संस्थाओं और स्थानीय निकायों के लिए ५६० करोड़ रुपया और क़मश: ६७ करोड़ रुपये की अनुशंसा दसवें वित्त आयोग ने की है। उसे एक साल का १२६ करोड़ रुपया और १६ करोड़ रुपया १९९६-९७ में और १९९७-९८ तथा १९९८-९९ में हर साल जो १४३ करोड़ रुपया इसको मिलना चाहिए था लेकिन वह नहीं मिला है। कारण बताया जाता है कि वहां पंचायती चुनाव नहीं हुआ है इसलिए हम पैसा नहीं देंगे, यह न्यायसंगत नहीं है। पंचायत के चुनाव के लिए वहां कानून बना, हाईकोर्ट में फेस किया, सुप्रीम कोर्ट में अपील है, इस कारण चुनाव नहीं हुआ है। इस वजह से बिहार का पैसा भारत सरकार भुगतान न करे, यह अत्याचार है और इसे सहन नहीं किया जा सकता है। इसलिए मेरा आग्रह है कि इसे तुरंत भुगतान किया जाना चाहिए। इसी तरह से राज्य सरकारों की भागीदारी जो २३ प्रतिशत से बढ़ाकर २९ प्रतिशत होने वाली है उसके तहत राज्य सरकार को ४५० करोड़ रुपया मिल सकता है वह भी नहीं मिला है। इसलिए हम आपके माध्यम से मंत्री जी से प्रार्थना करेंगे कि उसका भुगतान करा दिया जाए।

  गाडगिल फार्मूले के आधार पर केन्द्र से राज्यों को जो सहायता मिलती है उसमें जो हमारा हिस्सा १४८४ करोड़ का है वह १९९७-९८ और १९९८-९९ में भी वही रखा गया है। जो १५ प्रतिशत हर राज्य का बढ़ता है वह बिहार का नहीं बढ़ाया गया है। इसलिए जो २२३ करोड़ हमको और मिलना चाहिए वह भी नहीं मिला है। मैं प्रार्थना करूंगा कि गाडगिल फार्मूले के अतरिकत जो १५ प्रतिशत अतरिकत बढ़ाने का फार्मूला है उसे लागू करना चाहिए।

  श्री राजेन्द्र अग्िनहोत्री : बिहार के साथ जो अन्याय हुआ, उस समय आप सरकार में मंत्री थे।

 

">">*SHRI S. MURUGESAN (TENKASI): Hon'ble Speaker Sir, I am now a member of this august House as a Candidate identified by our leader Puratchi Thalaivi(Revolutionary Leader) who is a deity living in our hearts. I who hail from a poor family has been chosen by our Puratchi Thalaivi, the General Secretary of All India Anna Dravida Munnetra Kazhagam. First of all I would like to bestow my heart felt thanks to our great leader who lives in the heart of the masses.

I would also like to thank the electorate of my Tenkasi Constituency who have elected me with a huge margin to be the victorious candidate emerging from a multi-cornered contest.

The Budget for the year 1998-99 is the first budget of the present Finance Minister. Incidentally this happens to be my maiden speech to put forth my views on the Finance Bill that is a corollary to the Budget. In this august House that has many luminaries, my colleagues who have taken part in the discussions ahead of me have expressed their views on this Finance Bill. I feel proud and deem it a privilege to record my views during this debate.

Explaining the expenditure that has been committed, indicating the allocations that has been earmarked, identifying the ways and means for revenue collection through tax proposals, this Finance Bill seeks to remain a bill with a change that aims at consoling.

I congratulate the Finance Minister for rolling back price hikes and reducing certain taxes announced in the tax proposals. Particularly the measures pertaining to Petroleum Products and Urea have been adequately modified. I would like to record my appreciations for yielding to our demands.

The central point to our Finance Policy is to give new impetus to the dormant economic activity in the backward rural areas in our country. In line with that the backward areas which do not have industrial growth need to have schemes that would provide economic development.

----------------------------------------------------------------------------- * Translation of the speech originally delivered in Tamil.

Our Tenkasi Constituency is an industrially backward area. Though natural resourcs are available in plenty, though several herbal plants are found in abundance around Courtallam, no industrial effort has been made to tap these resources. A herbal medicine plant and a scent factory could be set up there. I would like to impress upon the Union Government to go in for this. This Finance Bill must give right directions to such proposals.

It is necessary to draw a perspective plan to improve the lot of the backward rural areas spread all over the country. For instance I would like to point out the plight of my Tenkasi Constituency. In this backward area Handloom weavers and Beedi workers form a large chunk of the population. In order to improve their living conditions, poverty alleviation programmes should reach them with more funds allocated for the purpose.

Our leader Puratchi Thalaivi has been impressing upon the Union Government to evolve a permanent solution to the vexing Cauvery water dispute. This has been incorporated in the action plan for the National agenda. In the same line effective water sharing and water management measures must follow. For instance Courtallam Falls is in my constituency. It could be developed to become a tourist spot like Shimla or Ooty. As such it attracts many tourists every year during the season. We get water in plenty in all the Falls there for about three months every year. During the remaining period of the year even drinking water becomes a scarce commodity leave alone water for irrigational purposes. I urge upon the Union Government to take upon itself the responsibility to create facility at Courtallam to store the water that flows away waste in to the Sea. A reservoir could be an answer and I request the Union Government to seriously consider taking up this project.

Tirunelveli town in the neighbourhood of my constituency is an important town around the place. It has been upgraded to be a Municipal Corporation. But there is not even a single railway train originating from Tirunelveli though there is a railway station. This hampers the pace of industrial growth there. It also affects the economic growth because commercial activity is slackened due to inadequate transportation facilities. Trains from Kanyakumari pass through this place. Just because there is no `Pit line' no train originates from there. Considering the need to give impetus to economic growth to this emerging town and also the backward rural pockets in the area, adequate measures should be taken to start train services originating from Tirunelveli.

Union Government are implementing several schemes for the uplift of poor and there are many financial assistance schemes to improve the lot of the poor especially those who live below the poverty line. But to our dismay we find that such benefits aimed at the poor do not really percolate down to the needy people. For instance the financial assistance extended through TADCO do not reach the needy ones. Some Banks scuttle the efforts of the poor who go in for those loans. Middlemen also hamper the judicious fund flow through these schemes. Several other benefits meant for the poor through schemes like TRYSEM and Jawahar Rozgar Yojna do not reach the poor people. I would like to humbly request the Union Minister for Finance to intervene and to ensure that these social measure aimed at the poor really benefit them and improve their standard of living. I also request you to increase the loan extended through the TRYSEM schemes as it is aimed at helping the youth going in for self-employment.

It is needless to mention that Agriculturists form the backbone of this country. They get loan grants for buying cattle and livestock. This may be increased.

Several financial assistance schemes are there for Waste Land Development. These schemes should be geared up with more allocations to ensure that more land could come under cultivation providing more job to many rural people.

Students who want to pursue higher studies overseas get loans from the assistance schemes of the Nationalised Banks. Even after fulfilling all the eligibility criteria and even after furnishing necessary surety etc., such loans are not sanctioned to the needy in their hour of need. Twenty five percent of the loan amount is sought to paid in advance to the Bank. Loan assistance to students should be liberal and I urge upon the Union Government to issue suitable instructions to the Banks to be lenient and liberal in disbursing loans to students in pursuit of higher education. I urge upon the Hon'ble Finance Minister to look in to this personally.

In addition to this I would like to bring to the notice of this august House a matter of urgent public importance.

There was a scam to the tune of about Rs. 1300 crores in Indian Bank. The scamsters and the culprits behind this scam causing a huge loss to the Indian Bank must be identified and brought to book. I urge upon the Union Government to take speedy action in this regard to punish the guilty and rejuvenate the Indian Bank that incurred heavy loss in extending loans.

My colleague who spoke ahead of me touched upon the need to wipe out corruption. I would like to point out the fact that the guilty identified by the Sarkaria Commission are going scot free. Sarkaria Commission observed that they resorted to Scientific Corruption.

not want to intervene.........(Interruptions) This is not correct.....(Interruptions) If he is allowed to speak about this, then I should also get time for clarification..... (Interruptions)

MR. SPEAKER: No. (Interruptions)

SHRI C. GOPAL (ARAKKONAM): He has not mentioned any name......(Interruptions)

(Interruptions)

MR. SPEAKER: Shri Baalu, please take your seat.

(Interruptions)

SHRI V. SATHIAMOORTHY (RAMANATHAPURAM): The Principal Sessions Court in Chennai has given direction to the police to investigate the allegations.......(Interruptions)

(Interruptions)

THE MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE IN THE MINISTRY OF FINANCE (BANKING, REVENUE AND INSURANCE) (SHRI KADAMBUR M.R. JANARTHANAN): What is their Government doing there?.........(Interruptions)

(Interruptions)

AN HON. MEMBER: Sarkaria Commission has proved that......* (Interruptions)

MR. SPEAKER: Shri Baalu, please take your seat.

----------------------------------------------------------------------------- * Expunged as ordered by the Chair.

*SHRI S. MURUGESAN : I would like to point out that an Hon'ble Minister in the Tamil Nadu Government was indicated bythe Court for acquiring property disproportionate to his income.......(Interruptions)

SHRI S. MURUGESAN: I request the Finance Minister to clarify as to what action has been taken in this regard. There is anotther important matter about the co-operatives.

Let me read, "The System of agricultural cooperatives in our country is plagued by bureaucracy and political interference at many levels. As part of a concerted programme to revitalise the cooperative section, government will shortly bring forward a model cooperative law to replace the Multi-State Cooperative Societies Act of 1984 and will encourage the States to make similar amendments in their own acts."

So, I request the Government to see that elections to the Co-operatives bodies in Tamil Nadu are held in accordance with the proposed Act. Then alone the Co-operative Banks and other bodies would be able to discharge their duties effectively. I urge upon the Finance Minister to look into it.

I would like to thank the Hon'ble Speaker for giving me this opportunity to speak on this bill.

While expressing my support to this Bill moved by the Hon'ble Finance Minister I would like to reiterate the need to allocate adequate funds to meet the basic needs and several other developmental schemes.

With this I conclude.

----------------------------------------------------------------------------

* *Translation of the Speech originally delivered in Tamil.

  ">21.00 hrs. SHRI K. BAPIRAJU (NARSAPUR): Mr. Speaker, Sir, I am grateful to you for giving me this opportunity to spell out a few suggestions on the Finance Bill. We have a young person as the Finance Minister.

MR. SPEAKER: Shri Bapiraju, please wait for a minute. There are five more speakers left. If the House agrees to sit upto 9.30 p.m. we can complete the list of speakers today itself. But there is a condition that every Member should speak for only five minutes each.

... (Interruptions)

SHRI MOTILAL VORA (RAJNANDGAON): Mr. Speaker, Sir, have all the previous speakers taken only five minutes? (Interruptions)

SHRI SANSUMA KHUNGGUR BWISWMUTHIARY (KOKRAJHAR): Mr. Speaker, Sir, the sitting of the House should be extended upto 10 o'clock.

PROF. P.J. KURIEN : Mr. Speaker, Sir, I agree with him. Let the sitting of the House be extended upto 10 o'clock. (Interruptions)

SHRI P.M. SAYEED (LAKSHADWEEP): Mr. Speaker, Sir, I would like to make a suggestion. You have said that there are only five speakers left. But if you say that the House will sit upto 9.30 p.m. or 9.40 p.m. in order to complete the list, according to our experience we have seen that it would go upto 10 o'clock. A ruling was given from the Chair already that dinner would be arranged if the House is extended beyond 9.00 p.m. That is one aspect.

The other aspect is that our staff and other people will go late today and they have to come again tomorrow morning. So, my humble submission is that you can call these five speakers tomorrow morning and we have time from 2.00 p.m. to 3.30 p.m. for the Minister's reply and passing of the Bill. If we want more time, we can start the Private Members' Business a little later than 3.30 p.m. If we have Zero Hour only for one hour tomorrow, then we will be in a position to pass the Finance Bill by 3.30 p.m and in case half-an-hour or one hour is needed more, by taking the sense of the House we can postpone the Private Members' Business till Four o'clock. This is my humble submission.

PROF JOGENDRA KAWADE (CHIMUR): Mr. Speaker, Sir, if we can continue to sit for half-an-hour more now, we can complete the list of speakers today itself.

PROF. P.J. KURIEN : Sir, our hon. Member Shri P.M. Sayeed has given a suggestion that, taking into consideration the difficulties of the staff who have to go late today and come again tomorrow morning and also in view of the fact that dinner also is not arranged, we can allow the remaining five speakers tomorrow. I think it is a suggestion to be considered. I have another addition to it. If need be, we can dispense with the Lunch Hour so that there would be enough time. We have only five speakers left. If the hon. Speaker sticks to the time of five minutes to each Member, then we can complete the list of speakers in half-an-hour.

MR. SPEAKER: Tomorrow morning some more Members may also would like to speak. That is the problem. If we complete the list of speakers today itself, that will be better so that the Minister can reply tomorrow.

PROF. P.J. KURIEN : Is that your ruling?

MR. SPEAKER: It is not a ruling. I want to take the sense of the House.

SHRI S. MALLIKARJUNIAH (TUMKUR): Mr. Speaker, Sir, with his foresightedness, Prof. Kurien could have arranged dinner for us. (Interruptions)

PROF. P.J. KURIEN : Sir, it is the responsibility of the Government to arrange it. (Interruptions)

MR. SPEAKER: All right. We will sit upto 9.30 p.m. and we will see after that. Shri Bapiraju can continue his speech. Please keep in mind the time limit.

SHRI K. BAPIRAJU : Mr. Speaker, Sir, I am grateful to you that finally you have decided to give me time. As I have already mentioned, we have a Minister who is young and quite decent. There is a lot of burden on his head. I would not try to advise him because I am a new entrant into Parliament. I would like to give a few suggestions with my little experience in the Assembly since I have also had the opportunity of having Commercial Tax and Excise as my portfolio as a Minister in the State.

Sir, I feel that a reduction in the tax rates by 50 per cent or even less and an effective vigilance will give more revenue. That is what I realised. I could get proper results as a Minister for Commercial Tax. In fact, we got the highest revenue to the extent of 11 per cent which has never been achieved in my State after Independence. Without any harassment to any industrialist, I could, with my coordinating officials and the industrialists together, improve our revenue collection in the State. Similarly, I will request the hon. Minister to think of applying his mind in reducing the tax rates and effective vigilance as it will give more revenue... (Interruptions).

Shri Sayeed, as I told you that I am just a baby. I thought, you will guide me from here. You are one of the seniormost Members here. We all respect you and we want your guidance. I hope, you do not mistake me. You are one of the disciplined persons.

Sir, I just want to request the Finance Minister to give us some kind of feelers so that we could give our suggestions. I do not think my speech or the speeches of other hon. Members can definitely do something. It is because I have been observing a number of sittings of the Assembly as well as the sittings here that a very little is being noted and reacted. So, I hope that this gentleman may react. I am speaking with that hope. Otherwise, I would have only observed the proceedings of this Session also. I did not want to open my mouth. But thinking that he would react I am trying to speak.

When I wanted to reduce the tax, our Finance Secretary and the Chief Secretary advised me that we cannot afford to reduce the tax. They asked me that when America is increasing the tax rates, how can Andhra Pradesh afford to decrease the tax rates? Then I said that the Americans are paying the tax. But here a lot of tax evasion is there. So, if people are able to pay the tax, it is well and good. A tax should always be a payable tax. Then only, the people will come forward to pay taxes. In that aspect I hope our hon. Minister will have a proper discussion about it. Above that, we cannot have more money whatever we may suggest. If we suggest about one department, the other department will lose. So, we may, like crazy persons, only think about our State or about a particular department which we may like. But I do not know how much is going to be useful because one is affected if you want to help the other person. So, naturally I would request the hon. Minister to save the money in the best possible way.

For example, you can take roads.

For laying of proper roads, you can take any amount of loan that you want to. That way, we can definitely save a lot of foreign exchange. It is because of bad roads that we are not able to reach our destination in time. We are also losing a lot of petrol. If we have good roads, a lot of foreign exchange spent on the import of petrol can be saved. This is one of the small suggestions that I wish to make to the hon. Minister. You can react to this or you can write a letter to me and I do not mind that because I consider myself to be too small to receive an explanation from you and also because several Members spoke. But when you talk to me separately, you can advice me on this and I do not mind that.

Regarding crop insurance, we all want to help our ryots. In 1986, a Committee headed by the Additional Secretary (Agriculture and Cooperation) was constituted to look into this matter. But the problem is that we are not able to put enough thrust on this. We are not keen on this. We are only mentioning, but we are hardly able to work for the society. I feel pity that a question on this was not answered in the Parliament. The point is to what extent we can take care of them. Of course, there is a burden, but 65 per cent of the society, be they farmers or agricultural labourers, live on agriculture. I hope, the hon. Minister will apply his mind to do something for the agriculturists.

Sir, if you press the bell one more time, I will sit down. You know that I have some discipline. You know me very well from my Assembly days. If you press the bell one more time, I will sit down even if I am in the middle of my speech. I believe, Sir, in self-discipline. So, if you press the bell one more time, I will sit down. You are kind enough to give me an opportunity and I will have no regrets at all.

Now, I come to the Polavaram Project. Our people are very keen in laying foundation-stones. I do not say that it is the case with any particular party or a Chief Minister, but generally, they are fond of laying foundation-stones. When it comes to the question of implementing them, they are very far off. The hon. Speaker comes from one end of the Godavari and I come from the other end of the Godavari. In 1978, the estimate cost of this Project was Rs. 1,100 crore. When completed, it can produce 1100 MWs. Today, to construct a thermal station, it costs about Rs. 5,000 crore. Today, the escalation cost is so high, that it may now cost you Rs. 11,000 crore or Rs. 12,000 crore. So, Sir, at least, you should make a start. I do not expect you to give us this amount immediately. But you can sow the seed. I am saying this because 80 per cent of this Godavari water is going to the sea and only 20 per cent is being utilised. We are fighting and dying for this Cauvery water, whereas we are wasting 80 per cent of the water in the Godavari. This is how we are not able to concentrate on anything. I request the Finance Minister to kindly review this matter with the other concerned Ministers and see how best this water can be utilised. As you know, hydel power is cheap. We cannot depend on coal only. The Americans, though they have 100 times more coal than what we have, are buying coal from other countries and they are not wasting their coal. They are storing it. Whatever little we have, we are exploiting it. We cannot afford to waste our mines. We have to preserve them to the extent possible and, at the same time, increase our foreign exchange earnings. It is very essential to do that.

You have mentioned about the exemption of four per cent CST that you have given on rice exports and other things.

We are not benefited by it locally because they say that only when the rice miller can export to the other country, he is exempted from CST of 4 per cent and no miller, no individual, can do any export in this country. Only foreign agencies will be doing that for which proper clarification was not given and for which the mention made by the hon. Minister is not properly understood by our State Government.

They are producing nuclear energy and the policy is that 50 per cent of revenue they get will be given to them to develop their nuclear energy plants for which they need some loaning facility. I hope you can think about it. We cannot afford to give up our plants. It is very difficult. I would request the hon. Finance Minister to see that loaning facility is created for Nuclear Energy Corporation of India.

We have prawn culture and fish culture in the coastal area for which we are gdetting about Rs.3 crore of foreign exchange. But prawn culture and fish culture are not coming under income tax net. It is not fair. Let it be considered as agriculture. Please see that more fish is produced, more export is done and more foreign exchange is brought to us. This is my suggesiton.

MR. SPEAKER: Shri K. Bapiraju, please conclude now.

SHRI K. BAPIRAJU : I conclude my speech.

">*SHRI B.M. MENSINKAI (DHARWAR-SOUTH) : Mr. Speaker, Sir, first of all I thank you for giving me an opportunity to speak for about five minutes on the Finance Bill. Sir, I want to speak in Kannada. I do not know whether Interpretation facility is there or not.

SHRI S. MALLIKARJUNAIAH (TUMKAR) : Yes, yes. Interpretation is available.

SOME OTHER HON'BLE MEMBERS : Yes, we are listening to interpretation.

SHRI B.M. MENSINKAI : Sir, the main hurdle in the progress of our economy is corruption. It is rampant throughout the country. It has spread all over the country and it is affecting the economy of the whole nation. People have the tendency of amassing huge wealth by any means. This tendency of accumulating wealth is more common among the educated people of our society. In fact, many hon'ble members of Parliament too have this tendency.

Mahatma Gandhi's statue is there outside the Parliament House. We look at it every day when we come to the House. But we do not care to think about his principles of life. His aim of life has no relevance to us. This is the condition in most parts of our nation. Corruption is rampant at all levels from top to bottom. I therefore urge upon the Hon'ble Finance Minister to take some measures to check corruption in our society. There is no mention about this measure in relevance to us. This is the condition in most parts of our nation. nCorruption is rampant at all levels from top to bottom. I therefore urge upon the Hon'ble finance Minister to take some measures to check corruption in our society. There is no mention about this measure in the Budgtet or Finance Bill, 1998-99. the property of all officers and others who are connected with the public life should be examined periodically. there should be provision for this in the law and I urge upon the Hon'ble finance Minister to do the needful in this regard.

_____________________________________________________________________  *Translation of the speech originally delivered in Kannada.

The major problem before the Government is to unearth the black money. This amount would be more than the total budget allocation. Hence the Centre should take immediate steps to make the people particularly politicians and bureaucrats to disclose their wealth periodically. This step is very essential to strengthen the economy of our countory. Sir, now I shall dwell upon only two or three important points relevant to the finance Bill, 1998-99.

*That is the limit which is prescribed under the Act for which a person should take the Permanent Account Number. It creates much confusion in the minds of the public. It causes harassment to ordinary dealers in the villages also. Therefore, I would request the hon. Finance Minister to repeal Section 139 (A) also.

Now I come to Section 142 (2A). Under this Section, if the Income Tax Officer is not satisfied with the accounts of an assessee audited by the Chartered Accountant, the Income Tax Officer is authorised to transfer that case or refer that case to some other Chartered Accountant for audit purpose. So, there is a scope for disbelieving the audited accounts of some Chartered Accountants. The purpose is to get the accounts audited by the Chartered Accountant is not solved. The Income Tax practitioners who are coming under Section 288 (2) of the Income Tax Act, are serving the solve purpose . Even under Section 288 (2) the Chartered Accountants also come in as an Accountant. Therefore, they should be treated as one and the same. So, I would request that Section 44 (AB) and 44 (AF) should be deleted from the statute because they are not serving any purpose. Black money is accumulating like anything now. To unearth blackmoney, Sections 44 (AB) and 44 (AF) were introduced earlier. Therefore, I would request the Finance Minister to see that these two sections are omitted. In case if they are to be continued, the Income Tax practitioners and the other tax advocates having five or ten years' experience are to be permitted to audit the accounts. Also, I feel that the limit of Rs.40 lakh which is already there is to be increased to rupees one crore for the purpose of audit if the Finance Minister believes in the audit of the Chartered Accountant.

____________________________________________________________________________ * This part of the speech was delivered in English.

Next, the cooperative movement in India is losing its ground. Because of the market economy and liberalised economy, some reservation is required to protect the cooperative movement. Therefore, I would request the Finance Minister to see that taxes are done away with in respect of the cooperatives. Already, some taxation measures are there. In America and England also,but there is tax exemption for the cooperative movement. Therefore, I would request the Finance Minister to act in this regard. If the Finance Minister wants some taxes to be paid by the cooperatives also, a minimum of at least 10 per cent of the income may be levied as tax.

There is no Model Cooperatives Act. Therefore, the Centre should consider implementation of the Model Cooperatives Act so that the States can enact a particular law to improve the conditions of the cooperatives in India.

I would like to make another point...(Interruptions) The powers of the officers of the Income Tax Department are limited to unearth the black money. Therefore, I would suggest that the Finance Minister should give them full powers to unearth the black money in the country. Though many of the Income Tax Officers or the Commissioners of Income Tax are not Chartered Accountants yet they have got the powers to examine the accounts and come to the conclusion whether correct accounts are maintained or not.

That way, the Finance Minister should give them more power so that his responsibility gets reduced.

With these words, I once again thank you for giving me the opportunity to speak.

">SHRI SANSUMA KHUNGGUR BWISWMUTHIARY (KOKRAJHAR): Hon. Speaker, Sir, and the learned Members of this august House including the Union Finance Minister, I will be brief in my speech. I may not be able to speak at length because of lack of time.

While speaking in the discussion on the Finance Bill, I would like to request the hon. Finance Minister through your honour, to take note of the following few but very genuine and serious points in the best interest of the nation as well as for the greater interest of the down-trodden Bodo and tribal people and other cross sections living within the Bodoland area.

I have not seen in the Budget any specific or scheme or projects for the well-being and development of tribal people. I left very sorry for that. That is why, I would like to appeal to the Government of India to undertake certain effective and concrete policy measures for the rapid development of the Scheduled Tribes and the Scheduled Castes so that these two vulnerable sections of the Indian society also can come up on par with the rest of the country.

During the past fifty years, the sort of developmental activities that were supposed to be done within the Tribal Sub-Plan Area and within the Scheduled Castes Component Plan area, those sort of things have never been done with great sincerity and seriousness. It is because of this fact, most of the areas and regions in our country are still lagging far behind. It is because of these reasons that questions like becoming separate from the existing States, are getting impetus and importance. This has led to the emergence of a lot of democratic and non-democratic kinds of agitations and struggles. I would like to mention here about the Bodoland Movement. Why have, our indigenous Bodo people been fighting to have a separate State of Bodoland? What are the reasons for our Naga brethren, the Mizo brethren, the Arunachal brethren and Meghalaya brethren to go away from Assam? The reason is the same. That is why, we are also fighting to have a separate State of Bodoland. It is the turn of the Bodos now to go out of Assam. It is because of the discriminatory attitude shown and injustice done to towards the indigenous tribal people of Assam that we are demanding for a separate State.

Here, I would like to state certain facts . The Bodoland Autonomous Council was constituted under the State Act in the year 1993. During this period of five years between 1993 and till date, hardly a sum of Rs.101 crore has been given by the Assam Government to the Bodoland Autonomous courcewhereas the total budget allocation of Assam comes to around Rs.1400 crore to Rs.1500 crore every year.

In percentage terms it comes to hardly 1.5. What sort of crimes or mistakes we, the Bodos, and the plains tribals have committed? Why have we have been discriminated against in such a manner? Even in the year 1998 also, during the last Budget Session, the Assam Government had earmarked hardly between Rs. 30 crore to 40 crore for Bodoland out of a total of about Rs. 14 crore to 15 crore. It comes to only 2.26 per cent. Even in regard to the much talked Prime Minister's Special Economic Package for the North-Eastern Region, out of Rs. 6,100 crore, for Assam it was earmarked around Rs. 3,550 crore, and for the schemes and projects undertaken or proposed to be to be undertaken -- there is hardly Rs. 500 crore. It comes to only around 14 per cent. In this regard also, a great sort of discrimination has been done towards the Bodoland areas. That is why, I would like to appeal to the Government of India to undertake a very strong, positive venture and decision to create a long awaited separate State of Bodoland within the Indian Union on the lines of Uttrakhand, Jharkhand and Chhatisgarh without any further delay. Here again, I would like to appeal to the hon. Finance Minister to set up a separate National Scheduled Tribe Finance and Development Corporation. The Government of India should create a separate Ministry for tribal people, tribal development and tribal security. The Commission for Scheduled Tribes has to be a separate one. There should be a separate Scheduled Tribe National Commission at the national level. Here again, I would like to appeal to the hon. Finance Minister to set up a Central Agricultural University within Bodoland because this Bodoland territory is very fertile. If we can have a separate State of Bodoland, then we can declare that Bodoland as Punjab or Haryana of the North-East. There are a lot of big and small rivers and tributaries flowing down from Bhutan and Arunachal Pradesh towards Brahamaputra. On those rivers, the Government of India should construct some multi-purpose irrigation dam projects and some hydel projects. MR. SPEAKER: Please wind up now.

SHRI SANSUMA KHUNGGUR BWISWMUTHIARY (KOKRAJHAR): Yes, Sir, I am just concluding. Here again, I would like to appeal to the Union Government and particularly, the hon. Finance Minister to earmark a minimum of Rs. 1,000 crore per year for the development of our neglected Bodoland territory. The Government of India should create a separate National Commission also for and tribal people and tribal sub-plan areas. We have been observing as to how many tribal people are there in the Yojna Bhawan to look after the tribals' scheme to be undertaken within the tribal areas. What sorts of suggestions will be made by the concerned Assam Government, only those are being undertaken. But the Assam Government is not interested at all to send any sort of proposal.

MR. SPEAKER: Shri Bwismuthiary, paleae wind up.

SHRI SANSUMA KHUNGGUR BWISWMUTHIARY : So here, I would like to appeal to the Government of India to set up some viable industrial units, to construct some multi-purpose irrigation dam projects, hydel projects within Bodoland areas. They should set up agro-based and forest-based industries there. I would also appeal to the Government of India to enhance the MP Local Area Development Fund, at least, in case of my constituency. My constituency consists of 10 Assembly segments. So, I require a minimum of Rs. 10 crore.

MR. SPEAKER: Shri Bwismuthiary, please wind up now.

SHRI SANSUMA KHUNGGUR BWISWMUTHIARY : I am concluding, Sir, within a minute. Sir, a great damage has been done towards the plane tribal people, towards the Scheduled Castes and Scheduled Tribes people over the last 50 years. That is why, the Government of India should earmark at least, 25 per cent out of the each and every Department's Budget for the damage done towards these vulnerable section of society. पिछले ५० सालों में शेडयूल्ड कास्टस और शेडयूल्ड ट्राइब्स के लोगों के साथ अन्याय किया गया। जब तक कनसर्नड डिपार्टमैंट से रिलेटिड बजट नहीं बनाया जाएगा, तब तक उनके साथ इंसाफ नहीं होगा।at least 25 per cent should be earmarked. Even if you see the Prime Minister's Special Economic Package, इससे हमें कोई फायदा नहीं होगा। ... (व्यवधान) MR. SPEAKER: Please conclude.

SHRI SANSUMA KHUNGGUR BWISWMUTHIARY :I do not like to prolong and disturb you. With these few words, I do like to conclude my speech and again I would like to request the hon. Finance Minister to take note of all these points very seriously. Very immediately the Government of India should take a very very effective action and positive decision to create the much long awaited State of Bodoland within the Indian Union without any further delay. There should not be, there cannot be justice of double standards. There cannot be secularism of double standards. In the same way as the Government of India is willing to concede Uttaranchal, Vananchal and Chattisgarh, they have to concede Bodoland also which is the genuine, the most legitimate and the many decade old birthright of Bodos.

MR. SPEAKER: There are only two more speakers, Shri Motilal Vora and Shri Rajendra Agnihotri, left now.