Lok Sabha Debates
Further Discussion On The Supplementary Demands For Grants 2004-2005. (Not ... on 20 December, 2004
> Title: Further discussion on the Supplementary Demands for Grants 2004-2005. (Not concluded).
14.50 hrs. DEMANDS FOR SUPPLEMENTARY GRANTS –( GENERAL) 2004–2005 contd.
MR. DEPUTY-SPEAKER: Now, the House shall take up Item No.14, further discussion on the Supplementary Demands for Grants 2004-05. Shri Adhir Chowdhury will continue.
SHRI ADHIR CHOWDHURY (BERHAMPORE, WEST BENGAL): Sir, in continuation to my yet-to-be concluded deliberation on Supplementary Demands for Grants, I would like to add a few more paras.
Sir, first of all, I must convey my warm and hearty congratulations to the UPA Government as this is the first time since Independence that the UPA Government has taken special steps to put a check on erosion, which has been devastating various parts of West Bengal has virtually and drastically changed geographically Murshidabad, Malda and other districts also. The Government has already constituted a Task Force in this direction and erosion-affected people have started heaving a sigh of relief after getting rid of this devastating erosion which existed over the years.
Again, I would urge upon the Government, through the hon. Finance Minister, to see that West Bengal is such a State which has been affected by arsenic contamination. As many as four crore people in the State of West Bengal have been living under the constant threat of arsenic menace. In the Murshidabad district, out of 26 blocks, 22 blocks have been affected by arsenic contamination, well exceeding the tolerance limits as prescribed by the World Health Organisation.
The Opposition has been pulling up their socks to discredit the brilliant performance of our hon. Finance Minister. But, Sir, a few days earlier, no less a person than the Nobel laureate, Prof. Amartya Sen has praised lavishly the performance of UPA Government. I just read a few lines from The Statesman:
"Calling for greater Government activity in social sectors, especially basic education and health care, Nobel Laureate Prof. Amartya Sen, who spoke at the India Habitat Centre here today said that the Indian economy have suffered from chronic under-activity in these fields on the one hand and over-activity, particularly licence raj, on the other hand. Prof. Sen said the 1992 reforms had tried to address the problems but they could not be dealt with effectively. But, there is considerable evidence now that the present Government is more committed to remove that imbalance in the social sector. "
Our hon. Finance Minister has struck a balance between mutually reinforcing objective of equity, stability and growth. Special emphasis has been put on social upgradation, employment generation, and reduction on dependence on disinvestment. Therefore, Sir, Opposition may be angry over the performance of this Government.
Already, macro-economic fundamentals are indicative of the growth of our economy. Production of basic goods, capital goods, intermediate goods and consumer durables are maintaining sustained growth. Index of six infrastructure industries increased by 5.6 per cent in April-August as compared to 4.2 per cent; Export growth has registered an increase by 24.4 per cent as compared to 8.1 per cent; indirect tax collections grew by 11.73 per cent till November; Customs Duty is showing an increase of 12.10 per cent and Excise Duty grew by 7.58 per cent. Service Tax during first eight months increased by 62.13 per cent. The rate of growth of the manufacturing sector over the corresponding period last year remained consistently at 8 per cent. Consumer durables showed double-digit growth. BoP both in terms of Current and Capital accounts recorded surpluses of Rs. 1.9 billion and Rs. 5.6 billion during the first quarter. Foreign Exchange reserve touched Rs. 7.5 billion during April-June, 2004. External debt has increased to Rs. 112.66 billion as compared to 112.5 billion at the end of March, 2004.
Long-term debt declined by Rs. 1.1 billion to Rs. 106.7 billion. Short-term debt rose by Rs. 1.2 billion due to trade-related credits on account of buoyant imports.
The total expenditure of the Government during April-September, 2004 was Rs. 1,95,573 crore or 41 per cent of the Budget Estimate for the year 2004-05 compared to Rs. 2,17,101 crore or 49 per cent of the Budget Estimate for the year 2003-04. The capital expenditure during April-September, 2004 was Rs. 29,115 crore compared to Rs. 25,074 crore in April-September, 2003.
The Plan expenditure goes up by Rs. 6,384 crore in absolute terms. The non-Plan expenditure by April-September has gone up to Rs. 1,42,299 crore compared to Rs. 1,70,211 crore.
The Central pool remained consistently above the buffer stock norms as per the recommendation of the Expenditure Reforms Commission in the first half. The stock on October 1, 2004 was at 20.3 million tonnes, 12 per cent higher than the buffer stock norm of 18.1 million tonnes, and excess stock of food grains has subsidy implications in the form of carrying cost.
Sir, as you know, the penury and petty syndrome has been done away with by the present Government. We do not want the food grains to be rotten in our godowns.
Scheduled commercial bank credit was increased by 11.3 per cent against four per cent. Food credit was increased by Rs. 2,677 crore against Rs. 12,107 crore in the previous year, with a turn around of Rs. 14,800 crore.
Non-food credit had registered a robust increase of 11.5 per cent against six per cent.
On the expenditure front, the Centre has been able to reduce the outgo on subsidies from Rs. 26,439 crore to Rs. 21,995 crore.
The Union Budget proposed a blueprint on subsidies prepared by the National Institute of Public Finance.
Sir, we are very much concentrating on quality expenditure by curtailing the wasteful expenditure and by fiscal consideration while sustaining the growth momentum with renewed thrust on welfare economies. However, the inflationary trend is very much evident on account of high oil prices, combined risk of high and uncertain oil prices. The sudden change of international liquidity environment had become a matter of concern. However, the inflationary trend has further been compounded by the increasing prices of steel and metal. Therefore, may I ask the hon. Finance Minister whether he is contemplating anything to contain the inflationary trend?
Sir, as we know, India is an oil importing country. The oil situation has been aggravated by the Iraq war, by the strike in Venezuela, and by the controversy about the control of Yukos in Russia. Therefore, may I ask the hon. Finance Minister whether he is conceiving stabilization of fund for the survival of Oil Pool Account? … (Interruptions)
MR. DEPUTY-SPEAKER: Please conclude. You have spoken for 18 minutes.
SHRI ADHIR CHOWDHURY : I will take a few more minutes.
Sir, we are well aware that in the wake of phasing out of agreement on textile and cloth, India is on the verge of obtaining a wide opportunity in view of our multi-fibre raw material base. However, the share of our textiles in the world is nominal, just three per cent in comparison to the Chinese share of 25 per cent. I ask the hon. Finance Minister whether, in view of the situation, the Indian textile market could be swamped by the invasion of silk or cotton yarn from China through Bangladesh.
15.00 hrs. I want to know whether it has been reviewed or not. Is any pre-emptive measure being taken up by this Government? The Opposition parties were resorting to unconvincing arguments. May I just tell one story to them?
ÉÊxÉMÉÉcå ÉÊVÉxÉBÉEÉÒ xÉcÉÓ cé, =£É®iÉä cÖªÉä ºÉÚ®VÉ {É®, ´Éä bÚ¤ÉiÉä cÖªÉä iÉÉ®Éå BÉEÉÒ ¤ÉÉiÉ BÉE®iÉä cé, BÉEÉÆOÉäºÉ BÉEä ºÉÉlÉ, càÉ VÉxÉiÉÉ BÉEä ºÉÉlÉ, BÉEÉÆOÉäºÉ BÉEÉ cÉlÉ, +ÉÉàÉ VÉxÉiÉÉ BÉEä ºÉÉlÉ* SHRI SAMIK LAHIRI (DIAMOND HARBOUR): Sir, I thank you for giving me this opportunity to express the view of my Party on this Demands for Supplementary Grants which is before us to be debated.
Sir, I do agree that within a span of six months, no Government can be tested. We have to wait at least one financial year to know or to judge the financial management, the expenditure and income, the overall Budget and policy of the Government. So, I do not wish to go into the details of all those things. When the hon. Finance Minister had placed the Budget on the 8th of July this year before this House, he was quite optimistic on two counts. First, he very candidly expressed the view of the UPA Government that this Budget would uphold the interest of the rural and the poor population of this country. They were neglected for the last six years. The second part was that he was quite optimistic that there would be increase of revenue sources.
If I quote the Finance Minister, while presenting his Budget, in his Budget speech in paragraph 52, he said about the revenue income. "Besides, my tax proposals, I have looked at another source of revenue. There are large recoverable arrears both in direct taxes and in indirect taxes." Again he went on saying, "Even the undisputed arrears are quite substantial. I have, therefore, assumed that I would be able to recover a tidy sum this year." With this, we also expressed our opinion on behalf of our Party that with this additional income, definitely a chunk of money would go or would be spent for the poor and the rural population of our country.
Now, if we go to the second aspect about revenue collection, it is a fact that on all counts, so far as indirect tax is concerned, if we compare the month of October in the previous year with the month of October this year, definitely the collection of customs duty, excise duty and service tax is much higher in terms of percentage and in terms of quantity. Even if we compare last year from April to September with this year, here also we will see that there is a definite increase in customs duty, excise duty and service tax by 69 per cent. But some reports appeared in the newspaper that the Government has internally asked the different revenue collection departments to raise the target, and the Government is in a fear that there will be a shortfall in tax collection. In case of customs duty, Rs.2,000 crore has been fixed as their target. In case of service tax, it is fixed as Rs.2,000 crore. In the direct tax component, Rs.5,000 crore has been revised, and they have been directed to fix up their target to an additional Rs.5,000 crore.
The hon. Minister of Finance has to definitely spell out before us whether the tax collection is quite satisfactory or not. We apprehend that whenever there is a huge fiscal deficit and whenever there is a fall in revenue collection, all the social sectors get the maximum hit in social expenditure like health, education, etc. Even in the previous year’s Budget, when the NDA Government was there, we saw that in the Revised Estimates, the social sector expenditure was reduced to a huge extent. So, definitely, we would like the hon. Minister of Finance to enlighten us how really the tax collection is moving. … (Interruptions)
THE MINISTER OF FINANCE (SHRI P. CHIDAMBARAM): Sir, let me assure the House, the latest figures show that we are on target. In income tax, corporation tax, and customs duties, we are on target.
The reason why, internally, maybe, the Department has increased the target in some of these heads is because we are doing well; and so they may have internally increased the target. I am not admitting to any increase in target but internally if the Department has done so that is a point in favour.
In personal income tax, corporation tax, and customs duties, we are on target. It is only on excise duties that we are slightly behind. One of the reasons for this is that we have cut excise duty on petroleum products. That is one of the reasons but I am confident that we would try to make up as much as possible on excise duties also. On service tax, as the hon. Member has also said, the collection is quite buoyant.
When I reply to the debate, I would give the exact figures; but since he said that this has appeared in the newspapers, I thought this clarification should also appear in the newspapers tomorrow. On personal income tax, corporation tax and customs duties, we are bang on target; in fact, we are slightly ahead.
SHRI SAMIK LAHIRI : I thank the hon. Minister of Finance for this positive and very good intervention. Even after the clarification made by the hon. Minister of Finance, so far as excise duties are concerned, there is definitely room for improvement. The prices of steel and petroleum products were going up and therefore the Government decided to go for a tax cut in these sectors but it is also a fact that the manufacturing sector has grown and the average industrial growth was higher compared to last year. Still, why has the excise duty collection remained lower? I think, the Government should look into this aspect also.
So far as direct tax is concerned, on corporate income tax and personal income tax, it has been categorically assured by the hon. Minister of Finance that the collections are on target. It is true that they are on target but if we look at the arrears that are pending and the total arrears realised this year, it is definitely much higher than last year. This year, the figure that I have got is Rs. 3,462 crore; last year, it was Rs. 2780 crore. There is still a huge amount of arrears pending. The CIT arrears, as on September 1, 2004 was Rs. 40,392 crore; the personal income tax arrears this year is Rs. 43,190 crore. So, I would like to know what is being done about collection of arrears. In the Budget Speech, the hon. Minister of Finance had assured this House that other sources like arrears which were pending, including undisputed arrears, would be very efficiently collected. So, the Government must look into this aspect also and tell us why so much of arrears are still pending.
When the petroleum prices were much higher, the Government decided to go for a tax cut. I have a basic question to ask. It is the easiest way to put the tax on the petroleum sector because the Government gets the revenue at the source itself. So, why does the Government not explore the other resources? How many people are within the tax net now?
So far as I remember the figure, it is just above three crores. The number of people who are paying direct tax, income tax is below three crores. What is the market size of people who can afford to buy anything? According to the speeches on several occasions made by the Finance Minister or the hon. Prime Minister, the total market size is around 18 crore to 20 crore, who can purchase anything, any consumer durable. Why are they out of the tax net? How is this Government going to bring them within the tax net? Why are they not going to collect tax from them? It is the easiest way to put tax on the petroleum products and to put the burden on the nation. This is a very easy way. Now, definitely, that thing is very painful. The way I am speaking here, it is not so easy to realise or to bring all those sections into the tax net, but definitely, we should expect it from the UPA Government that they will take this pain to bring those people into the tax net. As a result, the overall revenue income will definitely go up and the burden, which is being put on the shoulders of the people, can be avoided very well. Why is this path not being taken by the Government? I intend to know that. We need to do this. There is another point.
MR. DEPUTY-SPEAKER: Please conclude. You have taken more than 11 minutes.
… (Interruptions)
SHRI SAMIK LAHIRI : Sir, the second thing is that so far as the arrears in the indirect tax component ….
MR. DEPUTY-SPEAKER: I have a list of more than 20 hon. Members who want to speak.
SHRI SAMIK LAHIRI : Sir, our party is having only two speakers.
MD. SALIM (CALCUTTA – NORTH EAST): Discussion is about crores and crores of rupees and only 20 Members to speak! … (Interruptions)
SHRI SAMIK LAHIRI : Sir, if we discuss arrears on the indirect taxes side also, we will find that in the customs, there are arrears of Rs. 3,702 crore and in the excise also, there are huge arrears. How are these arrears going to be realised by the Government? What plan do they have to realise these arrears? I wish to know that.
Now, I go to the expenditure side of mid-term Budget. I must say one point before this House that in the mid-term review also, it has been spelt out that major subsidies have been decreased by Rs. 4,444 crore. On what count were these subsidies reduced? They were reduced on food grains and on petroleum, particularly kerosene and LPG. Who are using all these things? If these subsidies are removed, how is the UPA Government going to serve the people who have been deceived for the last six years by the other Government, by the NDA Government? Definitely, we must take into account the problems of the people, what the intention of the people was at the time of casting their votes and electing this Government and where the people""""""""s agenda goes. If we remove subsidies on things which are being used by the common people, by the poor people, by the down-trodden people and by the middle-class, and keep on taxing them on the other hand, how will the commitment of the UPA Government be fulfilled? I again request this Government to reconsider its decision on this particular account.
If we look at the fiscal deficit, we find that there is no sign that the fiscal deficit is going to be reduced. What is happening? I apprehend it is going to happen as to what has happened in the past. It has happened everytime, as I mentioned just before, that always the social service sectors are getting hit out of it, always the expenditure on education, health and rural development is reduced. If I take the example of rural development, I can quote the Finance Minister. In a debate, on the point of expenditure on or allocation for rural development, the Finance Minister had said : Compare it with the revised budget because there was … (Interruptions)
MR. DEPUTY-SPEAKER: Please conclude your speech.
SHRI SAMIK LAHIRI : I am concluding within five minutes.
MR. DEPUTY-SPEAKER: Not five minutes, you conclude within one minute.
SHRI SAMIK LAHIRI : The Finance Minister had said: Compare it with the revised budget. Now, even if we consider the original allocation, that is, BE and add to it whatever is now proposed to be allocated for rural development, the total amount comes to just above Rs. 7,000 crore.
What is going to happen if we fail to address the problems of the rural population? What is going to happen if we fail to address the basic problems of our country? We can talk a lot about growth, namely, such and such is the percentage of growth in our country, this sort of thing is happening, etc. What is the ground reality of our country, even though we are using many terminologies for it?
If we look at the Human Development Report, our rank is 127th. If we look at the public expenditure on health, it is below 1 per cent. If we look at the public expenditure on education, it is around 4 per cent. It is good that this Government has decided to impose cess. During the Budget debate also we had mentioned that the Government should look into this cess. Is this cess entirely spent on education or is it being diverted to some other places? How is this Government going to ensure it? How this Government is going to take care of the public expenditure on different social sectors? All this is not, unfortunately, being reflected in the Mid-term Review or in the Supplementary Budget, which appeared before us.
Sir, we are talking about reforms, and it is all right. Reforms are going on, but we are talking about land reforms. In Bengal, we can say from our own experience, with the help of land reforms the market size has been expanded. Why are we not going for land reforms? Why is this Government not taking up the agenda of land reforms? They can expand the market, the purchasing power of the people will be more, there will be overall industrial boom, and other economic activities will also go up.
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Secondly, the Government is pursuing very vigorously the issue of liberalisation. I would like to quote from the monthly review of the World Bank by an economist. I am sure that our hon. Finance Minister knows him very well. In the monthly review of March 2004, Mr. Branco Milanovic found that the richest 1 per cent in the world get as much income as the poorest 57 per cent. The richest 5 per cent had, in 1993, an average income 114 times greater than that of the poorest 5 per cent; the ratio was 78 times in 1998. The poorest 5 per cent grew poorer, losing 25 per cent of the real income, while the richest 20 per cent saw their real incomes grow by 12 per cent, more than twice the average world income. This is presently what is happening in the world. We must protect our people, and we must protect our economy. We must look at the problems of the common people.
I should again request the UPA Government to look at the rural population, look at the poor people, look at those children who are out of the schools, look at those undernourished and malnutrition suffered children, who are there in our country. The Government should try to put tax on those people who have money. The Government should try to recover black money, which has mounted here. Why is the Government not talking about realisation of black money, which is really hampering the growth of our economy?
Sir, I will not take any further time.
MR. DEPUTY-SPEAKER: Mr. Lahiri, you have already taken the whole time of your party. No other hon. Member from your party will be permitted to speak.
SHRI SAMIK LAHIRI : Sir, I am concluding. Thank you.
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For the first time, there is a mid-term review of the Budget, which is also presented before the House. Sir, I must, of course, compliment him because he has already said that he really believes in the spirit of the Fiscal Responsibility & Budget Management Act. One of the principles of this is that this year, in the six months period since the beginning of this financial year, the revenue deficit should have been 45 per cent. This time, he has reported that it would be 78.7 per cent of the Budget Estimate. We have already over-stated it substantially. At the same time, the non-debt receipts have also increased this year mainly on account the debt trappings by the State Government, which is a one-time affair. So, I think, over a period of time, as the year advances, you will have probably target of getting more tax collected. This is the point which he has said and I think the Finance Minister is going to be on target. I wish him all the best.
This year, 56,000 new assesses have been added. We have always been saying that we need to increase the tax GDP base. Only 56,000 assessees have been added. I would like to know how much tax had been collected from them because a person who files the income-tax becomes an assessee. Whether he pays income-tax or not is a different issue. When we are thinking of increasing the tax GDP ratio, our effort should be in increasing the amount of collection from new assessees. So, in that direction, I would like to know as to how he would really fair.
The Twelfth Finance Commission has just submitted a Report, two days ago, to the President of India. I am sure, it is going to have a great impact on the central financial resources during the year itself. How is it going to be effected? Is there any provision that is required or has anybody made any provision? How the fiscal deficit of the current year is affected is something, which I would definitely like to know from him. What is going to be the projected growth rate for the year? We always believe that unless we really sustain the great growth that we attained last year of more than eight per cent, we are really not going to attain the various social targets that we have in mind. Therefore, this year we are interested in seeing the growth rate increasing. In fact, the Reserve Bank of India is already saying that the growth rate should be much more than what has been projected earlier. Therefore, I would really like to know from the Finance Minister about this because it is the first time that he is making a reporting under this Act.
It has already been highlighted that savings need to increase because we need more investment. And for more investment and for the growth to be sustained, the savings to be consumed little later, there should not be current account deficit. We should not resort to foreign debt. We really need more FDIs. Unfortunately, in this year, the FDI has fallen to 1.3 billion dollars from 2.1 billion dollars. I would really like to know how the efforts will remain during the year because already the Prime Minister has announced that there should be something like 100 billion dollars to be targetted for the next ten years. I would think that when it is really falling, then the growth rate has also increased. Of course, the Fiscal Responsibility Act will take care of this. It is reducing the savings. It will turn into the revenue deficit. Then the Government’s savings will improve. By and large, to improve the savings rate as well as to ensure that the FDI is also increased, would he make sure that investment target is not missed? I would really like to know from him. He has highlighted that manufacture in India is now operating on a theme basis. Just 24 per cent or 26 per cent of GDP is not enough. How will the efforts be really made to increase that? There again, the Government really needs to spell out the complete strategy how the manufacturing in India will grow.
About agriculture, whenever agricultural production grows, like it happened last year, the growth rate improves. We really need a weather proof, monsoon proof agriculture. This is something, which is important. Otherwise, every time the monsoon fails, the agricultural production dips and then our growth rate goes down. This is another thing I would like to know.
We are entering a very serious phase in our public finance. The total debt of the Government of India is 64 per cent of the GDP. The foreign debt is not as high but the domestic debt is increasing very rapidly. I think, we really need to do something about it. I would like to know about it. By reducing the revenue deficit itself, by definition, we cannot reduce the debt. Therefore, we really need an action plan to see how our debt will be totally reduced.
This year we have seen that our external commercial borrowing of the corporate sector has increased. The foreign debt has remained at 1.12 to 1.6 per cent. On the one hand, we have got huge foreign exchange reserves and the rising of foreign exchange reserves is also causing a concern because the rupee is strengthening. We are actually doing open market operation for seeing that the rupee does not strengthen. As a result of this, liquidity is increasing in our system. People are resorting to external borrowings. Can you not think about a system whereby the external commercial borrowing can be used as our resources? How can we actually use that for resources, for bringing about development into our infrastructure? In fact, the Planning Commission has already made a proposal that five billion dollars every year can be used for it. This is something, which we really need to identify for our infrastructure projects, particularly in the power sector, particularly in the other infrastructure sectors. Infrastructure is crying for investment. At the same time, foreign exchange is rising. This is something which we really need to link. I am sure, the Government will have to plan for that.
NRI remittances this year have gone to 5.2 billion dollars. In fact, this is one of our success stories. Any non-resident Indian who is working abroad, particularly the workers who are remitting money back home, are helping us to tide over the problem. Therefore, we are having a Current Account surplus. These people are not really getting any incentive in the form of any fiscal incentive or otherwise from the Government. In fact, in the Investment Commission that has been appointed by the Government, there is not a single representative of the NRI. In fact, the money that should come to this country, most of it will come from the NRIs, as it happened in China; the overseas Chines have contributed significantly to it.
Exports are driving up the economy because the domestic demand is not driving as rapidly as it should. Only eight major items are now constituting 66 per cent of the exports.
So, it is another challenge which we really need to work on as to how we will be diversifying our export portfolios. Otherwise, this is something which will cost to us.
Sir, on infrastructure, the Electricity Act --as the hon. Finance Minister has also said -- has helped us to provide a stability to the policies on electricity sector. But there is always a talk of reviewing of the Electricity Act. That is also causing some sort of a confusion. So, I think, it is time that the Government makes it clear whether the Act is going to be reviewed. If at all, it is going to be reviewed, by what time the review would be completed? If at all, it is going to result into some changes, what are those changes being brought about, to ensure that this will really not result into destabilisation of the atmosphere that has been created?
Sir, another point of concern that we have is on the coal sector. The coal prices in India have increased so much. Now, if we compare the price of the Indian coal with that of the South African coal, it is probably six times higher in India to buy that coal. So, this is something which is unexplainable. This is something on the infrastructure that we really need to work on.
The second point of concern where all of us should be concerned, where many of our friends have already been pointing out, is the state of affairs of the State finances. The developmental expenditure of the States has come down from 10.17 per cent of the GDP to 8.9 per cent of the last 10 years. Suppose, it had not come down, then the States would have got Rs. 29,000 crore more to invest on development. So, the net transfer from the Central Government to the State Governments has come down from 5.57 per cent to 3.35 per cent of the GDP, and as a result of that, again, the States’ ability to invest more has come down by Rs. 50,500 crore. So, the debt servicing of the States has gone from Rs. 9,175 crore to Rs. 43,128 crore, where the States are now giving Rs. 18,468 crore more in terms of repayment than getting anything from the Central Government. The States interest liability, in fact, has gone up from 8.32 per cent to 12.96 per cent. Therefore, there is a huge gap between the interest paid by the States and the interest received by the Central Government. The gap of the interest that the Central Government borrows and at the rate at which it gives back to the State Governments has improved from 0.31 per cent to 4.99 per cent. That means, today the Central Government is charging five per cent more from the States for the loans that the States take from it. So, it is causing an adverse impact on the ability of the States to bring about development, which is actually telling in terms that they are not getting new infrastructure created. We say we want infrastructure to be created in the Central sector. But States also would need resources.
Sir, these Supplementary Demands should have provided for certain expenditure the Government is committed to. For example, the National Employment Bill is going to be introduced in Parliament. As per one estimation, one manday’s job created would require Rs. 126 for guarantee. The National Advisory Committee is saying that it is Rs. 100 for one mandays’s job. Even if we take the least of this, the amount of money that would be required to provide the job guarantee, for 34 million families, would be Rs. 42,840 crore. If the Government is going to introduce the Bill very soon, then probably, some amount of money should have been provided. Is it going to be implemented this year? If it is not going to be implemented this year, it would have a huge impact on the finances and the fiscal deficit.
Sir, Tapas Mazumdar Committee, in 1999, had said that for education Rs. 13,700 crore would be required every year for the next 10 years, to just keep all the out-of-school children back to the schools. The amount of money required to be provided for this, would have been much higher. This is not provided, as a result of which, again, the fiscal deficit would have been much higher.
My next point is on PSU dinvestment. On PSU disinvestment, the Government has already taken the credit for projecting Rs. 4,000 crore during the current year. But so far, the money released is only five per cent of the target. Is the PSU disinvestment going to take place? If it is not going to take place, then again, the fiscal deficit would rise by almost Rs. 4,000 crore.
Sir, the hon. Finance Minister announced that one million new water bodies would be brought into reality. I would like to know the progress in this regard. I was looking at the Compliance Report of this year’s Mid-Year Reviewt, and there is really nothing mentioned about these water bodies.
On health care, the Centre for Health and Allied Schemes have said that two out of five Primary Health Centres really do not have even skeletal staff, and improvement in the Budget for the last year is only five per cent. So, this again, will not be sufficient to meet the target. So, I would really like to know the progress about the Antyodaya Anna Yojana.
The point that I am making is that this Mid-Term Review of our current Budget as well as the reporting under the Fiscal Responsibility Act should encompass all the issues and make sure that we get a holistic picture to know whether the Government will be able to attain the targets as envisaged in the Act, and, the Supplementary Demands for Grants should provide for all these commitments which the Government has been making.
If adequate monetisation of these commitments is reflected in this Budget, probably the money will be much higher.… (Interruptions) Being the Opposition Party Member, I would not like to take more time.
={ÉÉvªÉFÉ àÉcÉänªÉ : +ÉÉ{ÉBÉEÉÒ {ÉÉ]ÉÔ ºÉä +É£ÉÉÒ ABÉE +ÉÉè® ºÉnºªÉ BÉEÉä ¤ÉÉäãÉxÉÉ cè* ªÉÉÊn ´Éc xÉcÉÓ ¤ÉÉäãÉxÉÉ SÉÉcå iÉÉä +ÉÉ{É +ÉÉè® ºÉàÉªÉ ãÉä ºÉBÉEiÉä cé* SHRI SURESH PRABHAKAR PRABHU : No, I will let the other Member get a chance.
SHRI MILIND DEORA (MUMBAI-SOUTH): Thank you, Sir. This is my maiden speech in Parliament.
At the outset, I think if we look at the Mid-term Review, the Finance Minister needs to be complimented for a high growth rate. We have seen the first quarter grow at seven per cent compared to five per cent corresponding quarter of last year. There are some concerns, as some hon. Members have pointed out, with regard to the fiscal situation in the country. But, over all I think that this Government, my Party, came to power with the fundamentals of inclusive growth which integrate people into the growth process rather than exclude them from the growth process. I think I would like to compliment my Party President, Shrimati Gandhi, also for giving the best of the economic leadership to this nation. Today, we have a Finance Minister who is a self-proclaimed Investment Minister, which I think is the mantra,the kind of philosophy, the new attitude we need in this nation. However, as an Investment Minister I would not go so far as to maybe agree with the statement someone made recently, viz, he has an undiluted love for Foreign Direct Investment. But, focusing on investment by appointing agencies like the Investment Commission, setting up the National Manufacturing Competitive Council, these are key areas to actually increase growth of the nation as a whole.
I would like to bring one point of attention to the Finance Minister, which I believe is not debated that adequately in Parliament, and that pertains to urban infrastructure. I come from an urban constituency. I come from Mumbai. My city is the single largest contributor to the national exchequer. In terms of its contribution of excise, customs, taxes, it sends Rs.50,000 crore every year to the national exchequer and its return is around one per cent. If a city, which is the gateway of India to investment, be it domestic investment, international investment, the city that houses the stock exchange, private sector, needs to grow we need to have a massive urban renewal programme not just in Mumbai city but in every other city around the country. We read regular reports in many Papers these days, about another city Bangalore, and various other cities where urban infrastructure is crumbling. Therefore, urban renewal should be taken up on a war footing. This Government was voted to power by various urban areas, various cities, not as per the expectations of many poll pundits and I think to live up to that expectation, a massive urban renewal programme should be offered a special package.
Pertaining to Mumbai specifically, two decades ago, the then Prime Minister, Shri Rajiv Gandhi launched the Prime Minister’s Grant Project (PMGP), a grant of Rs.100 crore for Mumbai City. Even today we have 75 per cent of our population living in slums or dilapidated buildings yet we are talked as the commercial capital of the nation. So, actually improving housing, transportation, all this must be reviewed. One point Mr. Finance Minister, through you, Sir, which I would like to raise, the only time Mumbai was mentioned in the last Budget was when a tax exemption was given to re-develop the old dilapidated buildings. I would very much urge the Finance Minister to review this grant and whether this IT exemption has actually helped and has been tenant and re-development friendly or has it been more builder-friendly. And if it has been latter, I would even go so far as to submit that this exemption be scrapped.
1549 hrs. (Shri Varkala Radhakrishnan in the Chair) Quickly, about the growth of various sectors, the most important pre-requisite for the growth of the nation as a whole, is infrastructure. Infrastructure, whether it is road, whether it is Tele-density, this is what connects village to village, villages to towns, farmers to market places, cities to cities, ensures free movement of goods and services. The Golden Quadrilateral Project has seen 8.5 per cent increase in the first half. We have seen electricity generation grown by eight per cent. Tele-density today stands at 8.2 per cent in the nation. We have finally achieved that trend which we see in countries like China, we see in continents like Africa, where cellular telephony, wireless telephony has out phased fixed line telephony.
However, there are some important issues in infrastructure which need to be addressed immediately. As India is rapidly becoming a manufacturing hub and is becoming a source to outsource various goods and services to the nation to enhance our export capabilities, there are two primary areas which need to be focussed on. First is our JNPT, the Jawaharlal Nehru Port Trust – which is a public port trust – and the other is NSICT which is a private port trust. It has been mentioned in the Mid-term Review that the short term strategies have been implemented. The long term issues such as growing third bulk terminal and fourth bulk terminal need to be pushed. But today the JNPT handles 50 per cent of the nation’s cargo traffic. Yet there are delays because of roads. The roads are not concretized and not widened. So, this needs to be implemented on a war footing.
The Container Corporation of India, which is owned by the Ministry of Railways is actually increasing the number of links to and from JNPT. This will also go a long way in modernising the port and actually enhancing our export capability. The Mumbai Airport handles 80 per cent of the nation’s international cargo traffic. I compliment this Government, the Finance Minister and also the Minister of Civil Aviation for taking this up on a war footing. But I hope that we can see modernisation of this not just for my constituency or for Mumbai but just for the nation as a whole.
Broadly speaking, there are three main areas, viz., services, agriculture, and industry. As regards services, in the first quarter, we have seen 10 per cent growth versus seven per cent growth in the corresponding period of last year. The most vibrant service sectors besides information technology, are IT enable services and entertainment. I would say largely that these are on auto-pilot mode. There was a comment made sometime back that because of the benign neglect of the Government, these sectors are not contributing and not doing very well. I think these are on auto-pilot mode and are performing exceedingly well.
As regards capital market, we have seen 25 IPOs in the first half which amounted to Rs.11,000 crore compared to only 15 IPOs in the preceding half of last year which amounted to Rs.2000 crore. There is a 400 per cent increase. I think largely this is because of reduction in the long term capital gains tax from 10 per cent to zero per cent and bringing down short term gains tax from 30 per cent to 10 per cent.
We have growth in agricultural sector. There have been several initiatives like setting up of Ministry of Panchayati Raj, restoration of water bodies, etc. Someone else has also mentioned that. From an urban stand point, I agree 70 per cent of the population does depend on the agricultural economy. If we strengthen the rural economy only then we can stem the process of urbanization which is leading to urban decay in various cities of the country.
However, there are some suggestions which I would like to make. There has been a lot of speculation in the papers about actually strengthening the working of cooperative banks. Today, the cooperative banks are regulated by NABARD. The NABARD is a lender and also a regulator. It has a commercial role as well as a regulatory role. So, clearly there can be conflict of interest. Separating them and revamping NABARD will go a long way.
Another point that has been raised is about common market connecting farmers and producers to their market places. One advent is commodity exchanges. We have seen commodity exchanges brought up in India for the first time and the most prominent being the NCDEC. Yet to ensure flexibility and to increase rural credit and to increase agri-lending which many banks provide -- and otherwise are interested in doing – we should make warehouse receipts as the negotiable instruments. Once the farmer delivers the produce to the warehouse, which will standardise the quota, take the warehouse receipt, this would actually allow the farmers, to go out and get increased credit. This would result in increased produce and it would also ensure quality. This will go a long way in increasing agricultural production of the nation. Of course, someone else mentioned the importance with the emphasis on products in areas which did not rely so heavily on monsoon such as horticulture. The cold storage chain infrastructure has been discussed for a long time. Every bank in the nation today has 18 per cent priority lending to agriculture. If we can re-categorise agricultural lending, in turn we can actually ensure that out of 18 per cent quota, banks can lend and urge people to invest in cold storage infrastructure which in turn will actually enhance the produce of horticulture and other products which have low reliance on monsoon. Mr. Prabhu also wanted to make it monsoon and weather proof. That is the kind of vision we need for agriculture.
Industry saw very high growth particularly in manufacturing area like machinery equipment, chemicals, automobile sector, etc. Textile exports grew by 13 per cent in the first quarter. When we talk about employment, which is a commitment for this Government, today the largest employer in the country after the Railways and the Government is the textile sector. Come January 2005, textile quotas will be abolished. We have a one time opportunity where this industry will be competing globally. Actually to ensure global competitiveness where we will be going head on against countries like China, Thailand and other low cost producing countries, I believe that setting up of a National Manufacturing Competitive Council can go a long way in actually facilitating dialogue between the sectors, between the corporations and the Government.
Otherwise, broadly, as I said, the economy is looking positive. There are thoughts that we can expect a six per cent growth in the social sector.The mid-day meal scheme, the supplementary grant of Rs. 2,000 crore for the Sarvasiksha Abhiyan Scheme are very welcome measures.
Sir, as a member of the Standing Committee on Defence, I have a small point to raise. In the last Budget we saw an increase of Rs. 18,000 crore in the Defence sector. But more than just a massive increase in the Budget, we saw revenue expenditure was brought down to 43 per cent and capital expenditure was raised from 30 per cent to 57 per cent. This is the key to ensuring modernisation. As we face conventional threats today we have to modernise our Armed Forces and this step would, no doubt, go a long way in ensuring that. Yet, when the Defence Acquisition Council makes a recommendation whether to buy or to make and if the recommendation is to buy then it goes to the DRDO and there is inevitably some delay in the process.
When the DRDO says that we should go for the buy, then we have to import it and this increases our reliance on imports thereby worsening the balance of payments position further. Therefore, creation and strengthening of a strong R&D-centric indigenous industry will lower our reliance on imports. This would be a matter of pride for us. If we could have demonstrated this in the IT sector, I am sure, we can do so in the areas of Defence as well. I think, one such incentive is being given in the pharmaceutical industry. For every one rupee invested on R&D in the pharmaceutical industry, there is tax rebate of Rs. 1.50 paise, if I am not wrong. If such an incentive can be given to the Defence sector, then we can see many companies that have strong R&D capabilities will be interested to invest in Defence research as well. This has gone a long way in strengthening our indigenous capabilities in pharmaceutical research as we are approaching a much more stringent patent regime. The only way we can compete with the multinational companies is by this way. Such incentives can also go a long way in strengthening our indigenous research capabilities in the Defence sector.
Sir, my last point is about the fiscal responsibility. This is a concern that has been raised by various hon. Members here. The FRBM does stipulate that we should bring the revenue deficit down to zero in four years. There are several reasons. The excise collection came down to absorb the oil price hike. However, maybe, to side with the Finance Minister, I would say that there is a leads and lags effect that the people must be aware of. Just by Quarter II, the point where we are right now, Government spending becomes very noticeable. By the end of the year, that is at Quarter IV, we see the unspent money from various Ministries being returned to the Government and we also see tax collection taking full effect. So, I believe, that situation at Quarter IV would be very different fiscally for the nation. But the way to improve the fiscal situation quickly is to improve and reform collection and expenditure.
Sir, to touch upon expenditure, I would like to submit that when we talk of subsidy, today there is a debate on revamping and reviewing the various subsidies. There are studies which have proven that every rural household and maybe a third of every urban household is dependent on bio-mass. If that is so, then that needs to be understood. If that is so, then the subsidy on LPG, kerosene, is it benefiting the poor? Is it benefiting the non-poor? The Finance Minister has all the answers and the Ministry has all the answers and I am sure that they will dig out the information.
Sir, one more point that I would like to touch upon is though a very welcome measure, yet is a contentious issue. The intellectual circles are debating this issue today and that is about the NREG. I have a vested interest in this. If the rural economy develops, if we are able to provide jobs to the village youths, then less people are going to come to the urban areas and less of urban decay would we see and there would also be less strain on urban infrastructure. Yet, there is a discussion on this amongst the intellectual circles as to whether this scheme, which is to be tabled in the Parliament soon, is a job creation scheme, an employment generation scheme or a dole guarantee scheme. To ensure that it serves the purpose of the former, to ensure that jobs are created, one way of looking at it is that subsidy, be it rural or urban, must ensure creation of sustainable and durable assets which would ensure job creation. I would like to give one example here.
16.00 hrs. Today, if someone takes a loan for housing and if they get an IT exemption, then that subsidy goes into creating an asset. It creates housing. It creates jobs in the construction industry and the sector supplying to the housing industry can benefit from it. So, that is the kind of a vision that we need with subsidies and with these kinds of schemes that ensure job creation. That has been the commitment of the UPA Government to the poor and to the youth of the nation and certainly, we will fulfil it. I welcome this.
My last point is on terms of collection. To increase the taxes to the GDP ratio which is today between eight to nine per cent, there are several initiatives that have been spoken about and reformed whether it is VAT or whether it is bringing down the customs tariff or whether it is exploring and bringing other services into the tax net. With industries that have a cheap and critical mass, these reforms need to be looked at. I think, in terms of tax collection, this Government is doing a very good job. Over the years, we have seen that, as taxes have been lowered, a lower tax regime leads to more compliance. There is a lot of empirical data to prove this. But, I think, as we go into aggressively pushing the Income Tax officers to collect taxes, there is some degree of complaints in this. While quoting the old saying "Do not milk the same cow thrice a day", I would say that we must push them for tax collection but just ensure that it is spread across the net.
With the fiscal situation that I have addressed, the overall economy looks very positive. I just hope, in a nutshell, that urban infrastructure will be given a special thrust in the forthcoming budget by the Finance Minister. A city like Mumbai is a goose that lays golden eggs. We must nurture this goose and give it more strength. Only then the overall economy will grow and the contribution to the national exchequer will increase.
With these words, I thank you, Sir.
MR. CHAIRMAN : Congratulations! Your speech was good.
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"As stipulated in the 1984 agreement pending receipt of the opinion of the Supreme Court and decision of the judge of the Supreme Court, Government of India should give due consideration to the request of Haryana and Rajasthan for making available additional power from the Central unallocated share from the Central generating stations, but nothing has been done so far to compensate the State of Rajasthan. The Ministry of Power, Government of India may be impressed upon to enhance the Central allocation quota to Rajasthan to the level of 40 per cent as was shared in the year 1996."
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We have an able and a capable Finance Minister in this country today. He has to his credit many firsts.
Earlier, when he was the Finance Minister, he had been successful in achieving some underlying, some noble things which everybody expected he would repeat in this term also. We are still expecting and waiting for him to work some wonders which in the last 6 or 7 months, as of now, we do not seem to have benefited from his bright ideas and his experience.
Sir, I would like to concentrate first on my State Orissa which has been consistently considered to be a poor State. But, as you all know, all the States of the East, namely, Orissa, Bihar, West Bengal, Assam are not poor States. Intrinsically, these are very rich States, if you take into consideration their natural resources, and the amount of fresh water that flows through these States. If you take the human resource aspect also into consideration, we will all be happy to note that these States are very developed States. But, in the past, a lot of wrong was done to the Eastern part of the country, especially to States like Orissa. We are all aware about something called ‘freight equalisation’. As far as freight equalisation is concerned, as you know, at the production head, whether it was coal or steel or iron ore or aluminium or manganese or whatever it may be, when they were produced or mined in Orissa or in Bihar and shipped to Mumbai or Ludhiana or Salem, the cost was the same as at the production head, thereby implying that the States in the Eastern part of this country like Orissa always subsidised in this country and it is these States which have built up this nation brick by brick. But, in return, today, what we see is that successive Union Governments, – except a small portion that the NDA ruled – federal Governments of India have always neglected the Eastern part of this country. Today, even the present Government has not fared better.
A State like Orissa does not only need money. As far as money is concerned, of course, we should get what we deserve. For example, they have not reviewed coal royalty, they have not tried to concentrate on our irrigation projects. They have not financed or funded sufficiently our irrigation projects, our infrastructure projects, thereby not only have the successive Central Governments taken away the wealth of States like Orissa, they have also, on the other hand, tried to push up and keep us as if we were waiting somewhere at the back burner, and we do not have a right to be an active part of this nation.
Sir, infrastructure development in the Eastern parts of India has been consistently dwindling in terms of funding in all successive Plans. It is evident even in the last Budget, it is evident throughout this Plan, and we are yet to see what the next Plan bodes us.
Except Assam and some parts of the North-East, Jharkhand, Bihar, Bengal and Orissa, as I said earlier, all have much more water resources. They are rich in minerals and their human resources are yet to be exploited. I am repeating this with an intention that these aspects need to be underlined so that whichever Party comes to power at the Centre has to keep this in mind that unless you reach an even keel in this nation, no development is genuine or no development is sustainable.
For instance, let us look at the bank deposits in a State like Orissa. The State Bank of India alone had collected around Rs. 4,000 crore in the year 2002-03 as deposits. The Government deposits, individual deposits and all kinds of deposits put together come to Rs. 4,000 crore, out of which, the re-investment in the State was a meagre 16 per cent. It just shows that the banks in States like Orissa do not wish to re-finance agricultural projects, and they do not want to finance small-scale industries or medium-scale industries. The money collected is collected in Orissa or Bihar or Bengal but it is invested somewhere else, thereby making our people even poorer. So, it is time that we take a thorough look at where we are driving this country. We are in a State where backwardness and under-development have resulted in extreme naxalism. Sir, as you are aware, naxalism or activities connected with naxalites prosper when there is utter and abject poverty. When people are poor, when the villages are poor, and when the common man is looking for his daily meal, he is frustrated, he is hungry, he is willing to take up arms against anything that, he thinks, is slightly connected with establishment. So, when we are thinking of fighting naxalism with guns and with police, we are blissfully unaware that the problem does not lie with the bullets or the guns of the naxalites. The problem lies with poverty, no education or low education, and abject deprivation. If we meet these points, then we need not fight naxalites only with bullets, we could clean out their base and we could create a situation where it would be difficult for such elements to thrive.
Sir, I have a suggestion. Suppose, the federal Government thinks that it would link say, Ranchi with Vijayawada with a four-lane national highway, that would touch many religious places, it would touch mineral resource bases, and it would go through the heartland of naxalism. When they are planning for a red corridor, if the federal Government, the Union Government of India plans for a proper national highway, then we will be able to beat them at their own game.
We will take the benefits to the society. With your so-called liberalism, your so-called open economy for the poorest of the poor in Eastern India, and with the road that would come, development, education and work would infuse wealth into those areas, but unfortunately what I find is that in successive Budgets and successive Plans, we preferred to remain blissfully unaware. We are not trying to meet certain basic demands of this country for which we are spending our energies, our resources in such a manner that they do not give us the fruits that the people are expecting. That is why, when most of us go to elections, when you go back to your constituency, people are constantly dissatisfied. They are asking all of us what the Government is doing, and our answer is that the Government is incapable, it is inept. So, it is like butter on bread. Everyone likes the thick coating of butter on his slice of bread. Here, the Indian Budget has successfully squandered away his spending. It is thinly spread out in all spheres.
We notice smaller countries like Thailand and Oman which have concentrated in two years’ period or three years’ period on particular projects, say, health, education and infrastructure. Infrastructure means, roads and ports. By doing it like that, what they have attained is a supremacy in those spheres where they have concentrated.
MR. CHAIRMAN : Please conclude.
SHRI TATHAGATA SATPATHY : I have nearly concluded. Some speakers before me have mentioned this. I would like to reiterate and pinpoint here that a project like the Pradhan Mantri Gramin Sadak Yojana, like four-laning and six-laning of the National Highways was not a political party’s agenda. It was not something that the former Prime Minister, Shri Atal Bihari Vajpayee could have put in his pocket and taken it home. It was a wealth that was being built for the nation. He had the vision. But if somebody has a vision and the Government changes, let us not destroy a vision. Let us concentrate on the good things, no matter which Party started it, which political motive was behind it. A good thing is always good.
As we have seen, in this Budget these projects have been sidelined, especially the Pradhan Mantri Gramin Sadak Yojana. In my constituency, Dhenkanal of Orissa, I have seen in deep interior villages concrete roads that could be comparable to the concrete roads of Bombay or even some smaller roads of the USA. They are of that quality, but the project has come to a complete standstill. There is no work being carried out now.
In conclusion, I would request the Government to please widen your vision, think beyond petty political boundaries and give a break to this nation.
SHRI SURAVARAM SUDHAKAR REDDY (NALGONDA): Mr. Chairman, Sir, I thank you for this opportunity. Since we passed a good Budget in this House about six months back, certain promises, which this Government has made to the people and the nation, are certainly fulfilled. But many of the promises are yet to be fulfilled.
I would like to remind that price rise is one of the very important issues, and the people of the country are very much concerned about it. Unfortunately, while the prices of foodgrains and essential commodities are growing, there is no remunerative price being paid for the peasants for most of the commodities which they produce. We had a discussion in this House about the remunerative price and other things. Unfortunately, the suicides of the peasants are still continuing.
The hon. Minister of Finance and, on his instructions, the Reserve Bank of India, asked the nationalised banks and the private banks to be liberal and give more loans to the agriculture sector. I remember, the hon. Minister of Finance had gone to the extent of saying that he stood guarantee for the peasants and they should not ask for other guarantees. Definitely, there is an increase in the amount of loans sanctioned but it is not up to the mark. Otherwise, the suicides would have been stopped long back. Most of the loans which these banks are said to have given to the peasants are only book adjustments as if the old loans are paid back and new loans are given. This is a very unfortunate situation. The Ministry of Finance should intervene to find out really how many new loans are given to peasants in various places.
The agricultural labourers are the biggest victims of famine and drought situation in various parts of the country. We expected, because of the situation arising out of the drought in various States, the Government of India would come out with a courageous step to totally waive the loans of the peasants up to Rs. 20,000 or Rs. 25,000. There is a one-time settlement for big industrialists but there is no such possibility of writing off of loans of the peasants who are producing food for the entire nation. On the other side, there is no sign of improvement of labour market. This is a unfortunate situation.
A decision is yet to be taken on the reopening of the closed public sector industries in this country. This is a very serious issue. I would like to remind the hon. Minister of Finance through you that the commitment of the Common Minimum Programme is to be fulfilled at the earliest. While there are some positive steps being taken by this Government, I am sorry to say that there is no demarcation from the previous NDA Government on various policies. One of the most important changes that should have been seen is on the question of commitment to the public sector. I do not say that the public sector undertakings which are totally running into losses should be reopened only to give wages to workers but there is a possibility that several industries could be modernised, reopened and at the same time give employment opportunities to a large number of workers, they were displaced because of the wrong policies pursued by the NDA Government which was against the public sector and which has made the public sector a victim continuously for the last several years.
The other issue is the question of disinvestment. Disinvestment is not necessary at this juncture when certain industries are earning profits. The decision of disinvestment in oil industry had been taken by the previous Government. I do not understand why the present Government is continuing to implement the same decision. There were allegations in the newspapers that ten per cent of the shares after disinvestment in the ONGC have been alloted to two unknown companies related to the Reliance Group. I do not know how far it is true. It has to be clarified by the Ministry of Petroleum & Natural Gas and by the Ministry of Finance. When there are profits, why should they disinvest? It is a question of policy and it is a question of ideology. The public sector should be further strengthened.
I would like to remind the hon. Minister of Finance of certain other things also. The Supplementary Budget has given proposals for several Departments. Naturally, there is a Supplementary Budget for the Postal Department also. I would like to remind him that there are about six lakh workers in the Postal Department and three lakh employees, that is about 300,000 workers are continuing as extra-departmental employees for the last several decades. The Government is supposed to be a model employer in this country but unfortunately the Government is not playing that role. They are refusing to give proper facilities and regularise these extra-departmental employees. Fifty per cent of the workers in the Postal Department are extra-departmental employees, is a matter of serious concern.
The Employment Guarantee Scheme, which is to be introduced here, is limited to 150 districts. We welcome it. It is a very good step. It will help. But it should be extended to many more districts which are in need of this type of activity, maybe, at least, to 300 districts in the near future.
I would like to remind the Government through you, Sir, that on several arbitration issues between the Government and the employees, as I mentioned earlier on the question of the model employer, the Government is taking a very negative attitude. When there is a dispute between the Government employees and the Government and after negotiations have failed, it goes to the arbitration, and after the arbitrator has given a decision, this is not implemented by the Government for several years. It is kept in abeyance and ultimately proposals are coming for a resolution in the Parliament, rejecting the arbitration awards. If the Government itself goes for this type of rejecting the arbitration award, then who will defend the workers in this country? And arbitration is something which the Government also accepts. The employer and the employee both should agree to implement these arbitration awards.
Sir, I would like to remind the hon. Minister of Finance about one very important aspect. In this Supplementary Budget, I do not find any special allocation or separate allotment for Telengana freedom fighters’ pension. There are about 13,000 Telengana freedom fighters who were continuously discriminated by the previous Governments for several years. During the last United Front Government, a special Screening Committee for the freedom fighters of the erstwhile Hyderabad State was appointed by the Union Government itself and all those who were in the Committee well know freedom fighters. They recommended about 13,000 names. About 18 new camps are to be accepted. For the last several years they are requesting for the Swatantrata Sanik Sammaan, unfortunately, there was discrimination against certain political parties? Telengana and Ponnapuravayalar arms struggles were not accepted as part of the freedom struggle. After 50 years of independence after they have applied and after their names have been cleared by the Screening Committee, their names are being rejected or are being kept in abeyance for several years.
Everyday we get the news that several old people are dying. If they get at least CGHS cards, if they get that honour that they are being accepted by the Government for Swatantrata Sanik Samaan, there is a possibility that they may live for some more months or for one or two years more. So, I request the hon. Minister of Finance to look into this issue very seriously.
Several lakhs of Telengana people participated in the freedom struggle. Nearly 4,500 people had laid down their lives for the liberation from the erstwhile feudal Nizam rule and they sacrificed everything. But, unfortunately, they are being denied these things.
Finally, I have a few suggestions to make to the hon. Minister of Finance. The Public Distribution System should be further strengthened so that the poor people in this country can be helped properly. I appeal for the reopening of the viable public sector undertakings. The Ministry of Chemicals and Fertilisers has asked for Rs. 300 crore, out of which Rs. 299 crore are required for the exchange loss. But I do not find any allotment for the reopening of the IDPL, which is a very important public sector undertaking under the M/o Chemicals and Fertilisers. Moreover, there is no mention about the HCL and CCI. These are the viable public sector undertakings. But, unfortunately, these have not been considered.
Sir, more liberal loans should be given to the agricultural labour. The bad debts are being written off for the industrialists. This is not a bad debt, this is because of the unusual situation in the country. So, the Government should come out with a courageous decision.
MR. CHAIRMAN : Shri Varkala Radhakrishnan – Not present.
Now, Shri Jasubhai Dhanabhai to speak.
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while extending my support to the Demands for Supplementary Grants, I want to make some critical observations regarding the functioning of the Government.
I may point out that we have passed a statute last time for fiscal management and budget responsibility. There was a Bill, if you remember. We all together passed that Bill. The aim of that statute was to have a control on budget management and fiscal responsibility as well. However, it is an irony of fate that we follow the old procedure of coming to the House with Supplementary Demands for Grants even after passing that statute.
On going through these Demands for Supplementary Grants we find that they relate more or less to all the Ministries. Nowhere I find any unexpected item of expenditure. When the Budget was discussed, all these things were there. All the items given in these columns relate to expenditure which was quite expected. However, unfortunately, due to mismanagement, if I may put it that way, the Finance Minister is again coming to the House for Supplementary Demands, even after passing the Fiscal Management statute. It is an irony of fate.
We should deviate from the old practice. For that purpose we have passed the statute. If this is the position, what is the use of passing a statute like this for fiscal management and financial responsibility, and all these things? They will have to bear this in mind.
Hereafter, I would advise the hon. Finance Minister, who is an expert in this matter, not to come another time with the Supplementary Demands. He should strictly follow the guidelines enshrined in the Statute. The Statute is passed by the House with a purpose and that purpose is not served. With these general remarks, I would like to make some observations. I cannot go into all the details. There are many details.
In page 1 of the Demands for Grants, we have the demand for agriculture. I am coming to the State of Kerala. There is a crisis as far as agricultural produce in Kerala is concerned. Price stability is not there anywhere in Kerala and the prices deviate, fluctuate day by day. The poor agricultural farmers are in a state of starvation. Our hon. Finance Minister is in my neighbouring State. He is quite aware of the position in Kerala. The position of Kerala is fully worst.
We are now in the last quarter of this financial year. When you come to the House next time with the Budget proposals, you have to see that stability in the agricultural produce market is ensured. You have to take necessary steps so that the poor agricultural farmers would not commit suicide in the near future. I think, you will give a patient hearing to their grievances and something will be done to save the agricultural farmers of not only Kerala but also of throughout the country from further frustration and further loss of lives.
Secondly, I take the case of education. Education is more or less a matter of commerce. It is not a matter of service; it is not a matter of culture. It has become, pure and simple, a commercial business. Higher education has become more or less, cent per cent commercial education. When I refer to higher education, I refer to functional colleges. The admission for medical or engineering college seats is given for Rs.10 lakh or Rs.15 lakh. That is the position. So, we should have a sound educational policy. The Minister should stop this Rs.10 lakh bargaining for the admission in medical colleges. He is also quite aware of it. In Tamil Nadu also, hundreds of colleges are mushrooming and they are demanding Rs.10 lakhs or Rs.15 lakhs from students who are migrating to Tamil Nadu. This is the usual practice and experience. So, until and unless we take some drastic steps, we would not be able to control the situation. For that purpose, I would suggest that please bring in a Central legislation - a Central legislation defining the purpose and the manner in which higher education will have to be given effect to in our democratic country. Please bring in a legislation.
The legislation which you have brought in the matter of minority education is also dangerous. It has certain provisions which will allow these people in the name of minority education, extract, extort lakhs and lakhs of rupees from the students who are seeking admission. It is more than extortion. For that purpose, we have to define the Admission Boards and we will have to define the powers of the management, whether it is private or otherwise, whether it is minority or otherwise, we will have to define their powers of admission. There must be a uniform policy, a uniform law applicable throughout India. Education, I understand, is in the Concurrent List. But we must have a Central legislation to curtail the powers of management in collecting fees from the students.
Thirdly, coming to literacy, the United Nations have declared that in the 20th Century, almost all the people will become literate. Even now, in India, we are having the largest number of illiterate people. We have 35 crores of illiterates in India. Even then, we do not have a policy. We do not care as to what steps we have to take.
The National Literacy Campaign is there on paper only. It is not functioning properly. I would advise the Government, through you, Sir, that the Finance Minister must take some methods by which the National Literacy Campaign becomes a reality and there should be no one in India who is unable to read or write. That must be the policy. I would request him to adopt such a course.
Coming to transfer between the Union and the States, now we are at the stage of introducing a new tax system, the Value Added Tax (VAT). At the same time, there are apprehensions about this tax system being introduced. The traders are very much afraid of it. They want that each and every State should have a separate system of VAT. There should not be a uniform system in India. It is better if the VAT can be introduced in a varied form in each and every State, taking into consideration its geographical condition and other things. At this stage, I would tell the hon. Finance Minister that when we introduce the VAT, my State Kerala will be a loser. We were getting forty per cent of the total income from the sales tax and this will be lost. Naturally, there will be a loss for the State in terms of revenue in so far as Kerala is concerned. What is the remedy? Hon. Finance Minister may say that the Centre will compensate. That compensation will not be a matter of perpetuity. It may be done for two to three years. But, in the long run, Kerala will be a loser. So, I would request the hon. Finance Minister to look into this issue of transferring some service taxes to the States. Now, the Centre is collecting all service taxes. The Hon. Finance Minister must consider giving some service tax to the States.
MR. CHAIRMAN : Please conclude.
SHRI VARKALA RADHAKRISHNAN : There are so many things to say. I do not want to go into the details because of lack of time. There are items which can be easily transferred to the States in the matter of collecting service taxes in lieu of sales tax. That matter may be looked into. I think, the Finance Ministers of the States and the Union Finance Minister will discuss all these matters and come to the rescue of the States.
Ours is a federal State. The Centre should definitely be strong enough and at the same time, it should not be at the expense of the States. So, the States should also be encouraged in having a viable financial status in so far as this tax is concerned.
Another thing is textiles. Handloom is facing a crisis. Textile is also in the Demands for Supplementary Grants. The textile policy is there. But that policy has not been implemented so far. That policy is still on paper. No administrative orders have been issued. I will cite one example. The Cannanore district of Kerala has been declared as the centre for handloom textiles. To my knowledge, the connected matters have not been given effect to. The net result is that after a lapse of six months since you came to the power, nothing has been done in this respect to implement this policy in detail.
Lastly, I come to corruption. The Lokpal Bill is discussed. It has not been passed. Corruption is the order of the day. There is corruption from top to bottom. We experience corruption in every walk of life. Of course, there are courts and vigilance department.
The effectiveness of the Vigilance Department also is a matter of dispute now. We should not claim that we are doing justice, but the people should also feel that justice is being administered. That must be the criterion. We all claim that we have a very good vigilance, CBI investigation… (Interruptions)
MR. CHAIRMAN : Mr.Radhakrishnan, please conclude now.
SHRI VARKALA RADHAKRISHNAN : So, I would request the hon. Finance Minister that when he comes next time with the Budget, he should see that this Bill is passed. A fair trial should be given, and the investigation into corruption charges should take place with due care and caution. I hope that he would look into all these matters.
With these words, I support the Demands for Supplementary Grants.
SHRI KINJARAPU YERRANNAIDU (SRIKAKULAM): Mr. Chairman, Sir, we are discussing the Demands for Supplementary Grants for the year 2004-05. After passing of the Fiscal Responsibility and Budget Management Act, 2003, the Government requires to review the receipts and expenditure relating to the Budget.
The hon. Finance Minister has admitted that one of the weak areas of the current economic situation is inflation. Secondly, the hon. Minister has also appreciated the last year’s performance of the NDA Government to achieve more than 8 per cent GDP. So, they did well in the agriculture, industry and service sector. According to the Mid-term Appraisal and even the quarterly appraisal, these sectors have done well.
17.22 hrs. (Shri Arjun Sethi in the Chair) We have to see the ground reality. That is the most important thing. Here, we are framing the policies. We are giving the figures etc. But they do not coincide with the ground reality. Regarding the price rise, I would submit that this is the highest inflation ever. It had not reached so high earlier. In the recent months, it had reached more than 8 per cent. Prices of all the essential commodities have increased. Recently, the Government has increased the price of petroleum three time. They have increased the price of gas two times. Now, the common man, the lower-income man, the middle-class man is suffering a lot. We have all this information.
Therefore, the Government should take suitable measures to control the prices of all the commodities. Even the State Governments are levying more than 30 per cent tax on the petroleum products. So, they should convene all the Chief Ministers’ Conference to sort out these issues. All the State Governments are accusing the Centre, whether it was the NDA Government or whether it is the UPA Government in power. So, they have to take a considered view. They have to reduce the excise and customs duty. Simultaneously, they should request the State Governments to reduce the sales tax. Then, the prices will be reduced.
Regarding agriculture, I would submit that the farmers of this country are providing food for more than 100 crore people. But it is a pity that they have no respect, they have no credit, they have no basic amenity, and they have no infrastructure. This is the fate of the Indian farmers today.
Last year, the Congress party led by Shrimati Sonia Gandhi and other State leaders accused the NDA Government and also the TDP Government for these suicides by the farmers. It is true that the farmers are committing suicide. The farmers are committing suicide not only in Andhra Pradesh but also in Karnataka, Maharashtra and various other parts of the country. The farmers are committing suicide. Everybody knows the fate of the farmers of this country. But Sir, my friends from the other side, have taken the political advantage. Okay, they have taken the political advantage. They had criticised the policies of the NDA Government at the Centre and they had also criticised the policies of the TDP Government in Andhra Pradesh. But what are they doing now? After the Congress party came to power in Andhra Pradesh as well as at the Centre, why did they not stop the suicidal deaths of the farmers? Why have they not taken steps to control all these things?
In Andhra Pradesh, about 2000 farmers had committed suicides in 200 days of their ruling. It is really a shameful thing. Even the foreign Ambassadors, after reading the newspaper reports, came to Andhra Pradesh to enquire about it.… (Interruptions)
MR. CHAIRMAN : He is not yielding. Please sit down.
DR. CHINTA MOHAN (TIRUPATI): Sir, he is giving wrong figures… (Interruptions)
MR. CHAIRMAN: Nothing will go on record except what Shri Yerrannaidu is saying.
(Interruptions) … * MR. CHAIRMAN: Nothing is being recorded. Please sit down.
(Interruptions) …* SHRI KINJARAPU YERRANNAIDU : Shri Parsuram, a student of MBA, has collected all the district-wise, mandal-wise, village-wise information and compiled it in this book. This book is the basis for me. I am not blaming them. They have been criticising the NDA and the TDP Governments for it. They made a promise that if they come to power, the suicidal deaths of the farmers would be stopped in this country. On the contrary, on an average, every day ten suicidal deaths are taking place in Andhra Pradesh, Karnataka and Maharashtra. My question to this Government is, what comprehensive policy does it have to control suicidal deaths of farmers.
The Government has made an announcement to the effect that in coming three years the credit to the farmers will be doubled. This is a good step. I also appreciate it. In reality, what happened in Andhra Pradesh or for that matter everywhere? How about the corporate sector of this country? All the cooperative banks, even the cooperative credit societies have no money. In the morning, one of my colleagues had raised this issue. Under the RBI Act, a number of banks are below the network and thus are not able to provide credit to the farming community. The Government has given money for re-capitalisation of the UTI as also of the nationalised banks but for the cooperative sector it has just appointed a Committee. The NDA Government had also appointed Kapur Committee. On Shri Vikhe Patil’s recommendation also, another Committee was appointed.
* Not Recorded Every Government is appointing committees but nobody is looking for re-capitalisation.… (Interruptions)
MR. CHAIRMAN: Please conclude.
SHRI KINJARAPU YERRANNAIDU : I have just started. Please give me five more minutes.
So, in the interest of public the Government has given money to UTI. To give breathing to the commercial banks, after Shri Devi Lal announced moratorium, the Government has lent money to them. But, to the cooperative banks, no money was given. This is very important issue. Suicides by farmers is really shameful for all of us in this country. The Government should look into the reasons of the farmers’ suicides.
SHRI K.S. RAO (ELURU): Support Price is the main reason for this.
SHRI KINJARAPU YERRANNAIDU : Support Price is one of the problems. Now, Andhra Pradesh Government has announced a moratorium. They are not getting money. Even the private money-lenders are not providing money. All these are the factors responsible for farmers’ suicides. So, a comprehensive policy in this regard, especially for the States like Andhra Pradesh, Karnataka and Maharashtra where farmers are committing suicides, has to be announced by the Government of India. This is my earnest demand to the hon. Finance Minister.
Now, I come to the Employment Guarantee Scheme. The hon. Finance Minister has recently told the Media persons that he will be bringing a Bill in this Session itself. Only two days are left and I am expecting that the Government will come with a Bill before the House adjourns sine die. As per Media reports as also as per my CPI, CPI(M) friends, the Act is now diluted. We are introducing the first of its kind of an Act. It should have stringent provisions which should be helpful to the unemployed persons. Taking help of this Act, they should be able to go to the Court or approach the District Administration and demand their right. So, the Government has to incorporate some stringent provisions in this Act, otherwise, it is of no use. Some States like Maharashtra has already had this Act. Some other such Acts are there in other States. Taking into consideration the deficiencies of all the existing Acts, the Government should enact a stringent Act in this regard.
Cotton farmers are not getting the Minimum Support Price. Recently, the Andhra Pradesh Chief Minister and Members of Parliament met the hon. Prime Minister and the concerned Ministers also.
Even in Maharashtra, MARKFED is purchasing at Rs.2500 per quintal. But in Andhra Pradesh, they are not getting even Rs.1600 per quintal. The groundnut farmers, particularly in Rayalaseema are not getting Minimum Support Price.
MR. CHAIRMAN : Mr. Yerrannaidu, you may continue after one announcement.
Hon. Members, the hon. Speaker has received a request from the hon. Minister of Civil Aviation that in view of some urgent work, he will not be able to attend the Half-an-Hour discussion listed for today regarding proposal for new airports. Hon. Speaker has postponed the same for tomorrow.
So, we will continue this discussion on Supplementary Demands for Grants till 6 p.m. SHRI KINJARAPU YERRANNAIDU : The cotton farmers are not getting MSP. Even groundnut farmers in Andhra Pradesh are not getting MSP. The Finance Minister should instruct the Cotton Corporation of India to open more purchasing centres for purchasing their product at the Minimum Support Price.
As regards amendment of Seeds Act, 2002, the previous TDP Government demanded this amendment. The present Rajasekhara Reddy Government and even other State Governments are also demanding it. There is no financial involvement in the amendment of Seeds Act and it would protect the Indian farmers. We are taking years together to do this. It is a shameful thing. Even the previous Government delayed it. That is why, my request to the hon. Minister of Agriculture would be to bring an amendment Bill to amend the Seeds Act in the next Session. There are a lot of loopholes. The present Act is not able to control the spurious seed sellers. That is why, the Finance Minister should take all the steps to control the suicide of farmers. You are saying that the country has 130 billion dollars foreign exchange. That is all right. The stock exchange is going up steadily. But what is the use? The farmers are committing suicide. There are starvation deaths. Is it not shameful? Who will believe that we have 130 billion dollars of foreign exchange reserve? So the first priority should be to prevent the suicides. From tomorrow onwards no suicidal deaths should occur in this country. Only then you and this Government would get the praise. Otherwise, nobody would believe that you will double the agricultural credit in three years. That is why, the Government should take all necessary steps to improve the condition of the farmers in this country.
SHRI P. CHIDAMBARAM: Sir, time and again, hon. Members have raised their genuine concern about suicidal deaths. I think it is very shameful if any farmer in this country is driven to suicide and invariably because he cannot repay the loan. But I want to put this in a proper context. Please allow me to do so. I feel very deeply about it and I want to put this in the context. Studies conducted in Andhra Pradesh reveal that invariably the farmer who has committed suicide is a farmer who has taken a loan from a money lender. I am not saying in every case but, by and large, invariably he is a person who has taken money from money lenders. The money lenders lend at usurious rates and it is impossible for any one whether he is a farmer or a businessman to pay those interest rates. The answer is to bring all the farmers under what we call "institutional credit". There are 10 crore farmer households in this country. When this Government took over, only four crore farmer households get bank credit. Six crore households do not get institutional credit. Now, it is impossible for any Government to jump from four crore to 10 crore in one year or six months. Our ultimate goal is to ensure that everybody gets credit from a bank. But that cannot be done, however well meaning we are and whoever is the Minister, it cannot be done in one year. What have we done this year? This year, we have said that four crore farmers will be increased to 4.5 crore farmers. We are adding another 50 lakh new borrowers, among farmers, to institutional credit.
In the 18th July policy also I have said and I want to make this appeal to all those farmers who have borrowed from the moneylenders that they could come to any bank, the bank would take over that loan and give them the principal amount to pay off the moneylender and the farmers, in turn, can become institutional borrowers. That is, if a person has taken a loan from a moneylender at 30 per cent, then he can come to a bank and the bank would advance him the principal amount and the farmer then can pay off the moneylender and in the process become an institutional borrower.
I concede that this message has not spread throughout the country. It is going to take us some time to spread this message. I am travelling as much as I can. I have urged the hon. Members of Parliament to please travel in their constituencies, to go round to the banks, talk to the bank managers, talk to the farmers and tell them that if anybody is driven to a point where he cannot simply service the loan of a moneylender, then he should be taken to the bank and it must be seen that the loan taken from the moneylender is taken over by the bank and the moneylender is paid off. I would like to urge the hon. Members to please co-operate in this matter. This cannot be done by one person or one Minister or by one Government. Until all of us pull our weight together, this cannot be done. Believe me, over a period of time we will ensure that almost all farmers come under institutional credit… (Interruptions)
MR. CHAIRMAN : Nothing will go on record.
(Interruptions) …* SHRI KINJARAPU YERRANNAIDU : Sir, I just want to ask one question … (Interruptions)
MR. CHAIRMAN: You can seek clarifications when the hon. Minister will reply to the debate.
… (Interruptions)
SHRI KINJARAPU YERRANNAIDU : Sir, I agree with what the hon. Minister is saying. There was a question on this sometime back and I had given suggestions to the hon. Minister about this. We are taking his message but I would like to request the hon. Minister to appoint them in some advisory capacity… (Interruptions)
MR. CHAIRMAN: Nothing, except the speech of Shri Kharventhan, will go on record.
(Interruptions) … * *Not Recorded SHRI S.K. KHARVENTHAN (PALANI): Mr. Chairman, Sir, thank you very much for giving me this opportunity to speak on the Demands for Supplementary Grants for the year 2004-05. I rise to support the Demands.
Sir, all political parties before elections make promises to the electorate. Now, this is the time to take stock of things and find out to what extent the promises made by the parties before elections have been fulfilled. The leader of our Party, Smt. Sonia Gandhi and also the alliance partners of the UPA made certain promises to the people. It has been around 111 days that the UPA Government has come into power. I would like to mention some of the achievements of this Government in these few months that it has been in power.
Sir, first of all, the FDI ceiling in the civil aviation sector has been raised from 40 to 49 per cent. The Foreign Institutional Investment Security and Exchange Board has reduced the time of processing applications from 13 working days to seven working days. The Government has raised the ceiling for FIIs in debt from one billion dollar to 1.75 billion dollar. Two per cent cess has been levied both on direct and indirect taxes for funding basic education. Collateral security on education loan up to 7.5 lakhs has also been removed. A Task Force has been set up to recommend action for revamping the Co-operative Banking Sector. The Rural Infrastructure Development Fund has been revived with a corpus of Rs. 8,000 crore. Instead of the BIFR, we now have the Board for Re-construction of Public Enterprises. The interest rates for Central loan to State Governments has been reduced from 10.5 per cent to nine per cent. Furthermore, thousands of crores of rupees were allocated to the city of Chennai for setting up a de-salination plant in the city.
This is number one scheme throughout the world which comes under Reverse Osmosis Programme. If the Scheme is implemented, it will produce 200 million litres of water per day. But it is unfortunate that the State Government has not taken any steps to implement this Programme. Of course, money is given from the Government.
As regards Value Added Tax, I would like to mention that areas under my constituency like Ottanchattram and Kangeyam and an area under my neighbouring constituency, namely, Oothukuzhi are famous for butter and ghee. They are exported to various countries of the world. In Tamil Nadu, there is no sales tax for butter by the State Government. There is no TNGST and CST for ghee sold in Tamil Nadu. If ghee is sold in Tamil Nadu, the general sales tax is levied at 10 per cent and if it is sold outside the State, then it is four per cent. We came to know that the proposed Value Added Tax for butter and ghee is 12.5 per cent. But there is no tax for desi butter sold by Khadi Bhandar. It will affect the farmers in places like Ottanchattram, Kangeyam and Oothukuzhi. I would request the Hon. Finance Minister not to levy any tax for butter and ghee.
With respect to problems relating to agriculture, Mr. Yerrannaidu has raised certain questions. Our hon. Finance Minister has visited some places in Tamil Nadu and instructed the banks on the spot itself to give loans to farmers. But officers of the nationalised banks are asking individual farmers to get a clearance certificate from not less than ten nationalised banks of that region. After getting such a certificate from all those banks, they are simply saying that they are having the IRDP loan of Rs. 500 only and thus, the farmers are not sanctioned the loan. This is the situation. The co-operative banks are also not giving any loan to them. So, farmers are struggling for getting fresh loans. Those who regularly repay the loans are also not given fresh loans. So, the Government should take steps to give loans to farmers. Those farmers are living below the poverty line. Hence, if loans are not waived, at least the penal interest should be waived off.
In the Demands for Supplementary Grants, there is a head for Ministry of Health and Family Welfare. The National TB Control Programme is allocated Rs. 14 crore for meeting an additional expenditure of anti-AIDS Control Campaign under the National Aids Control Programme. The allocation for this Programme is Rs. 190 crore. While discussing about this aspect previously, I had mentioned that there are many NGOs who are getting crores of rupees from both our Government and abroad for AIDS Awareness Programme. Most of these NGOs are not spending a single rupee for this Programme. In a village which has only 150 people, they are showing bogus bills for 2000 condoms and so on. So, the income tax authorities and other authorities must check these NGOs regularly. Otherwise, giving funds to them is of no use.
There is another column under the Ministry of Rural Development. There is a programme called the National Food for Work Programme which has been allocated Rs. 2020 crores. There is already a Programme called Sampoorna Gramin Rozgar Yojana under which we are giving foodgrains for the workers. We are giving Rs. 50 per day as their salary as also foodgrains at the block level. The rice given is totally taken away by the local politicians and being sold outside. The contractors are not giving any rice to the people. If that scheme is successfully implemented, then it will serve some purpose.
Another important is about the judiciary. I am not disputing that it comes under the State. Throughout the country, wherever we have moffussil courts are functioning, they have no building and other infrastructural facilities. The Government has to allocate a separate fund for construction of court buildings. As regards advocates, each State is having the Welfare Fund Scheme. For example, in Tamil Nadu, the Welfare Fund Scheme is exempted from tax but Karnataka is not exempted from Income Tax. The Welfare Fund Scheme for advocates is implemented by the State Government throughout the country and it should be exempted from income tax.
I would like to make one more request, which is regarding farmers. In the Northern States, there is a lot of water, because it has rivers like the Ganga, Brahma Putra and other rivers. But if you go to South, there is no water at all. Unless the rivers are inter-linked, the problem will not be solved. Our Government has to allocate more funds for inter-linking of rivers.
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Sir, our Budget is aimed to meet the National Common Minimum Programme. As you know, our economy depends mainly on agriculture and, that is why, maximum thrust has been given to rural development, agriculture, education, new technology and small and traditional industries. Without increasing the investment in agriculture, our economy cannot develop and we cannot achieve the desired rate of growth. That is why, our Government is going to, almost, double the investment in the rural sector.
Just now the hon. Member from the Opposition Benches was stating about the condition of the rural people. We all know the condition of our rural people and that is why the investment in the rural sector has been doubled by the Government. The main realistic effort, the Government made, is the provision for 100-day guaranteed employment.
We know that after its implementation, the economy of the people under BPL will be enhanced. They can join the productive process and that will also contribute to the growth of our GDP. There may be some economic constraint, but we know that our Finance Minister has a innovative vision and initiative and we can overcome this.
Just two hours back, one of the Members in the Opposition Benches was giving a very gloomy picture of our economy. He was stating how a child is developing and that shows how the economy will grow. I want to say how the child is developing and how our economy is developing. Though there were many odd factors, like 12 per cent deficient rainfall, high price of petroleum products, we find that our revenue collection from the indirect taxes, in the first five months of the fiscal year, show an increase of 12.59 per cent. The industrial growth in the first half of the year registered eight per cent growth. The manufacturing sector grew at the rate of 8.2 per cent. The export figures of September 2004 show a phenomenal growth of 25 per cent. In infrastructure, 56 per cent of the works of Golden Quadrilateral projects have been completed, and in electricity generation, upto October 2004, 7.5 per cent growth has been registered as against 6.9 per cent in the corresponding previous year. In telephony we have a very high growth. Mobile and land phones totalled to 88.4 million in October 2004. This is 27 per cent above the level of previous year, which was 69.6 million. This is the picture how we are growing.
Another point which is very delighting to note is that the world rating by AT Kerney considered India as a superior manufacturing location than the US. ‘India has 20 companies with less than 100 billion turnover’, in FORBES the list of 2000 world’s best companies. These are very encouraging to the investors all over the world. It can be realised what is the potential and power of our economy.
I wish to say something about North-Eastern region, particularly, our State of Assam. Recently, the hon. Prime Minister visited our region and because of his visit the poor people and peasants of our region have become very enthusiastic. They hope that their lives will be changed very soon because ours is a very backward and undeveloped area. Though we have very much potential of development, it is not yet properly utilised by any of the Governments. Our main problem is of transport. It is the bottleneck of our development. Many parts of our State are not well connected by rail or road.
I belong to Barak Valley. Barak Valley is a place where there is no train connection. A meter gauge line was there cnnecting Guwahati and in the name of conversion to broad gauge train runs upto Lumding. it was withdrawn. Now only a meter gauge line is there. There is no mail train and very frequently the trains are suspended there, which disrupts almost all the communications. The broad gauge construction was started about seven or eight years back. The previous Government could complete only 25 per cent of works and it is due to the negligence of the Government, without sincare efforts we can not get a broad gauge line.
18.00 hrs. MR. CHAIRMAN : How much time will you take?
SHRI LALIT MOHAN SUKLABAIDYA : I will just complete within two minutes.
Now the UPA Government has decided to step up the work because without its completion the broad gauge cannot move to Tripura, Manipur or other places. Our agriculture is most undeveloped. We need to introduce technology there. It is because, without application of technology, we cannot develop our agriculture. We have also cultivable land which is to be reclaimed. We have also swamp land, by applying technology we can also have one-time cultivation there.
Sir, every year we suffer from floods in the Brahmaputra and Barak tributaries, and lose billions of rupees. There was a proposal for dredging Brahmaputra and Barak. That has to be implemented. We need to control the floods.
We are proud of our tea industry. It earns huge revenue. Every day, almost half a million people are engaged in this industry. But, this industry is going to sick and the Government must take some action. One garden which is known as Pathni was taken over by the previous Government but that garden has now been abandoned and all the labourers are unemployed there and are spending their time in inhuman condition.
There is a peculiar problem in our State. We have some teachers in permitted and Recognised schools and colleges. They do all the jobs like Government school teachers but they do not get any salary. So, I request as requested earlier that out of the two per cent cess, which the Minister of Human Resource Development is going to get, we have to leave a part so that our teachers can be paid salary. With these words. I support the supplementary Demand for grants laid before the Parliament by the Hon’ble Finance Minister.
MR. CHAIRMAN: Now, the House stands adjourned to meet tomorrow, 21st December, 2004, at 11.00 a.m. 18.02 hrs. The Lok Sabha then adjourned till Eleven of the Clock on Tuedsay, December 21, 2004/Agrahayana 30, 1926 (Saka).
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