LOK SABHA
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SYNOPSIS OF DEBATES
(Proceedings other than Questions & Answers)
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Wednesday, March 20, 2002 / Phalguna 29, 1923 (Saka)
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STATEMENT BY MINISTER
Re : Approval of use of Ethanol as oxygenate in place of ETBE
THE MINISTER OF PETROLEUM AND NATURAL GAS
(SHRI RAM NAIK) : As the hon. Members are aware, the Ministry of Petroleum and Natural Gas has been making efforts to encourage the use of ethanol blended petrol (gasohol). I had made a suo motu statement in this august House in December 2001 on the success of the pilot projects and extending the use of gasohol to the entire country.
Simultaneously, the Ministry was also considering the feasibility of the use of Ethyl Tertiary Butyl Ether (ETBE) as oxygenate in petrol. ETBE is rated as a better oxygenate compared to Methyl tertiary Butyl Ether (MTBE).
The Ministry of Petroleum and Natural Gas had constituted a Committee of
Experts under the Chairmanship of Dr. S.J. Chopra, Executive Director, Centre for High Technology. This committee has concluded that the blending of ethanol with petrol is a better option as compared to blending of ETBE from the various aspects, namely, operational, financial, environmental, technical, logistics, etc. In addition, ethanol is a biodegradable product and can technically be blended upto 10 per cent in gasoline without effecting major changes in petrol engines. It has high octane number and better thermal efficiency. The committee has stated that blending of ETBE can be done at refineries only which involves huge cost for setting up of ETBE plants. Each such plant would cost about Rs.100 crore as against about Rs.30 to Rs.40 lakh for creating ethanol blending facilities at depots. This approach of using ethanol is less capital intensive and decentralised as depots are located all over India.
The decision to use ethanol as an oxygenate would, on the one hand, lead to its increased use and would also result in phasing out of the use of MTBE. In India, MTBE is being used as an additive to the petrol at two refineries – Mumbai refinery of Bharat Petroleum Corporation Ltd., and Koyali Refinery, Gujarat of India Oil Corporation Ltd. There has been a growing concern about the use of MTBE as oxygenate in petrol as it is reported to result in water pollution when it seeps into the ground water and gives unacceptable odour to the water. Incidentally, the US Senate has recently approved the phasing out of MTBE over four years.
Presently, ethanol is being blended in petrol in three pilot projects launched at Manmad and Miraj in Maharashtra and Bareilly in Uttar Pradesh. Further, blending at three more locations in U.P. (Gonda, Kanpur and Najibabad), two in Punjab (Bhatinda and Pathankot) and one in Andhra Pradesh (Rajahmundry) are planned. Government has already taken a decision to extend the blending of five per cent ethanol with petrol throughout the country in two phases. The first phase would cover the sugarcane growing States of Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh. The rest of the country would be covered in the second phase. To promote the use of ethanol in petrol, the Finance Minister has announced in the budget for the year 2002-03, an excise duty concession of Rs.0.75 per litre on petrol blended with ethanol.
Use of ethanol (five per cent) in petrol leads to better combustion and significantly lower emission of pollutants. For five per cent blending of ethanol with petrol on all India basis, about 500 million litres of ethanol would be required. The decision to use ethanol had been made in view of the advantages of use of ethanol accruing to the oil industry, sugarcane growing farmers and the environment. I am certain that the entire country would reap the benefits of this far-reaching decision.
MATTERS UNDER RULE 377
(i) Need to extend Godavari Express upto Bhusawal in Maharasthra.
SHRI Y.G. MAHAJAN : The passengers are facing great difficulty following the change in the timing of the Seva Gram Express which starts from Mumbai in morning for Jalgaon in Maharasthra. The people of this area will be greatly benefited if the train running between Kurla-Manmad is extended up to Bhusawal. I urge upon the Government to take necessary action in this regard.
(ii) Need for early construction of a rail overbridge at Palanpur, Gujarat.
SHRI HARIBHAI CHAUDHARY : A railway overbridge was constructed at Palanpur headquarters of Banaskantha 30 years ago. However, the traffic have increased multifold resulting into heavy congestion of passengers and traffic. Number of accidents are taking place now and then. The Government of Gujarat had sent a proposal for widening of this railway over bridge. However, it has not been constructed so far. I would like to urge upon the Government to take up the construction work of this over bridge at the earliest.
(iii) Need to utilize the expertise of traditional nomadic groups who use the rare herbal and medicinal plants for healing.
DR. SANJAY PASWAN : I would like to draw the kind attention of the Government towards the pathetic conditions of vast group of traditional healers. There are vast number of nomadic groups, who are engaged in searching and compiling the rare herbal and medicinal plant of indigenous origin. In the modern world there is high demand of such Indian herbal plant and herbal therapy all over the world. I request the Government should make an Address Bank of such persons with this type of expertise, identification of such nomadic groups and thereafter the rehabilitation of all such groups for the preservation of this type of ancestral knowledge-based therapy of Indian origin.
(iv) Need to develop ‘Kesaria’ in East Champaran district in Bihar as a tourist resort.
SHRI RADHA MOHAN SINGH : Kesaria situated in the East Champaran district of Bihar on the North Bank of Ganga is a great historical and ancient place. This place abounds in number of ancient ruins and remnants of historical monuments. I urge upon the Government that arrangements should be made for the preservation of this tallest stupas of the world and development of this world famous tourist spot as a tourist resort.
(v) Need to clear the proposal of Bihar Government for setting up of more power plants to enhance power generation and rural electrification.
SHRI RAJO SINGH : After the partition of Bihar, there is only one power station of NTPC left in the entire Bihar. 63 per cent of the total installed generation capacity has been transferred to Jharkhand State. Hence, it is necessary that additional power generation capacity be created and the capacity of existing power generation plants be increased. The expansion of Mujaffarpur thermal power plant and Barauni Thermal Power plant need to be carried out. Besides, the existing transmission and distribution network need to be strengthened and a new transmission and distribution network is required to be set up. I urge upon the Government to expedite the implementation of the proposal sent by the Government of Bihar for the solution of electricity problem and the rural electrification in Begusarai Parliamentary constituency.
(vi) Need to provide financial assistance to Government of Madhya Pradesh for construction of canal under Ban Sagar Dam Project.
SHRI SUNDER LAL TIWARI : The Ban Sagar Dam Project in Rewa division has almost been completed and it has started generating power. However, the work relating to construction of Kyoti, Purva and Singhawal canals flowing from this dam has not yet been taken up. As a result of which, the farmers of Rewa, Sidhi, Satna and Shehdol district are still deprived of irrigation facilities. The State Government cannot afford to carry out the construction of these canals on its own. The Government of Madhya Pradesh has constantly been making request for the Central assistance for the construction of these canals. Hence, I request the Government to allot required funds for the construction of canals flowing from Ban Sagar Dam at the earliest.
(vii) Need to set up a regulatory authority to control the activities of T.V. operators to safeguard the interest of general consumers.
DR. MANDA JAGANNATH : Most of the Cable T.V. Operators operating in the big cities are monopolizing their areas and charge arbitrarily without any reasoning. Consumers are not allowed to change for a better operators who gives better services at reasonable rates. I appeal to the Government to look into the problems of consumers and standardize charges. I, therefore, request the Government to control the activities of cable T.V. operators through a regulatory authority and protect the interests of helpless crores of T.V. viewers.
(viii) Need to ensure involvement of Members of Parliament in implementation of centrally sponsored schemes.
SHRI C.N. SINGH : Under Pradhan Mantri Sadak Yojana, the Government had given an assurance that the proposals for the construction of roads at a cost upto 2 crore rupees would be sought and implemented at the recommendation of local M.Ps. However, I regret to say that the same is not being implemented under my Parliamentary Constituency Jaunpur and Pratapgarh (Uttar Pradesh). Hence, I urge upon the Government to ensure the participation of Members of Parliament in the centrally sponsored schemes.
(ix) Need to withdraw the move to make disinvestments in Neyveli Lignite Corporation.
SHRI C. KUPPUSAMI : The Government has a proposal to make disinvestments of Neyveli Lignite Corporation. It is a unique undertaking with an integrated project of coal mining and power generation. The electricity generated through their power stations are sold to the States of Kerala, Karnataka, Pondicherry, Andhra Pradesh at a very cheap rate. If the NLC is privatized, then the economy of all the Southern States would be affected. Therefore, I would urge upon the Government not to make any efforts to disturb the capital structural arrangements of this undertaking as that would unnecessarily create trouble not only in the power sector but also would affect the entire economy of the Southern States.
(x) Need to provide financial assistance to the Government of Maharashtra for
construction of a wall along the bank of River Krishna at Karad in Satara district.
SHRI SHRINIWAS PATIL : There is an urgent need for construction of a wall along the bank of River Krishna and Koyana near confluence of these rivers at Karad, Satara District in Maharashtra to protect the samadhi of Late Yashvantrao Chavan, former Deputy Prime Minister of India.
I request the Union Government to provide financial assistance to Government of Maharashtra in this regard.
(xi) Need to construct a road connecting Pakbada at National Highway No.24, Moradabad, with National Highway at Kashipur, U.P. and declare it as a National Highway.
SHRI CHANDRA VIJAY SINGH : The Government can save crores of rupees being spent on petrol and diesel, if a new road is constructed connecting Pakbada at National Highway No.24, Moradabad, with National Highway at Kashipur, U.P. thereby reducing the distance between Kumaun region in Uttaranchal and Delhi. It would also lead to the development of this region.
THE BUDGET (GENERAL) – 2002-2003
GENERAL DISCUSSION
DEMANDS FOR GRANTS ON ACCOUNT (GENERAL) – 2002-2003
SUPPLEMENTARY DEMAND FOR GRANTS (GENERAL) – 2001-2002
AND
DEMAND FOR EXCESS GRANTS (GENERAL) – 1998 –99-Contd.
SHRI KHARABELA SWAIN : The hon. Finance Minister has tried to put the derailed economy back on the rails. For the last 50 years, when Congress Party ruled over this country, what was their economic target? The Congress people basically wanted that everybody in this country should get everything free and everything should be subsidised. That is the basic reason why the country has been impoverished. Basically, all hon. Members raised two or three questions why there was an industrial slowdown, why no employment was generated and why there was a demand recession.
I now come to the point with regard to LPG cylinder. The opposition say that it is going to affect the poor. Is there anybody in this country belonging to salaried class who is getting less than Rs.10,000 salary now? Why should the Government provide subsidised LPG cylinder to somebody who is getting more than Rs.10,000 as salary? This is my basic question. I have already told that 70 per cent of the subsidised kerosene is being utilised for adulterating petrol and diesel. There is a huge black-market in the country which is flourishing only because of the subsidised kerosene. So, I do not want that the price of kerosene should be reduced. 25 crore people of this country are benefited by LPG cylinders. Why should 78 crore people subsidise for the need of 25 crore people only? Why should we give this privilege only to 25 crore people? It should not be given. I am opposed to the reduction in the price of LPG cylinder.
Now I come to the question of agricultural subsidy. People say why should we not give subsidy in our country to this sector also? Agriculture is a agri-business. It is basically a business. In our country 70 per cent population is agriculturists. We insult the farmer by saying that he is poor, he is helpless because it is the same farmer who has produced extra quantity of 32.4 million tonnes of wheat and 48.39 million tonnes of rice.
As regards Voluntary Retirement Scheme, those are the most benefited persons who have taken this voluntary retirement from the Government. So, just spreading canards that the BJP Government has taken away subsidy for fertiliser, subsidy for kerosene, subsidy for gas cylinder, subsidy for agriculturists, so, it is anti-farmer, it is anti-middle class people. This is all basically untrue. Whatever we are doing, we are just doing for the good of the people. It may not be visible today but it will be visible only after one or two years.
A question was asked as to why there is a demand recession and why is there a recession in the industrial sector. The hon. Minister of Finance gave four types of tax rebates to the middle class people last year in his Budget. That is why the collection of revenue was much less. He expected that it would boost the demand so that it would give a boost to the industrial sector also. But this has never happened. Therefore, the hon. Minister of Finance did not have any other go but to go in for the rural sector and the agricultural sector. He has given so much of incentives to the rural sector, to the milk-producing sector and the foodgrains production sector that there will be money in the pockets of the farmers in the future. If there is a boost to agricultural sector, there will be an automatic boost to the industry and there will be a growth in the industrial sector and the industrial sector growth is directly or indirectly attached to the employment generation.
With regard to the cut in the interest rate for small savings, the basic economics says that the small-scale savings interest rate should be synonymous with the rate of inflation. The rate of inflation in India, for the last five years, is only 4.5 per cent. If the rate of inflation is only 4.5 per cent, why should there be an interest rate of 12 per cent? I would congratulate the hon. Minister of Finance who has been able to reduce the Government cost by Rs. 10,000 crore last year.
The main expenditure is interest burden and we cannot reduce it because interest burden is fixed and we are paying such a high rate of interest on small savings. The Finance Minister’s economy is correct that he has reduced the interest rate.
I congratulate the Finance Minister for having given Rs. 500 crore for the urban development for the purpose of reform-linked assistance to the States. Any State, which will go for reforms, will get more money.
I also congratulate him because he has understood the importance of food processing. Food processing and tourism are capable of providing enormous employment in this country. He has understood that and given weightage to those sectors. The airports, the housing sector, the growth in tourism sector, the steel industry and textile sector are the harbingers of growth. So, he has gone for giving a boost to them.
I will make one more request to the Finance Minister that if he has gone for widening of the service tax net, why has he not brought the doctors and lawyers under the net of the service tax? They really are the money-earners of the society. They are capable of just paying it. My last suggestion is please go for the labour reforms too.
SHRI JYOTIRADITYA M. SCINDIA : At the outset, I would like to place on record our deepest condolences on the passing away of our late Speaker, beloved Shri Balayogi.
The economy is in a decelerating phase and urgent steps are required to restore the momentum. Developmental objectives and economic prosperity are measured not only in terms of GDP or per capita income growth, but also in terms of human well-being index. In the growth of competitiveness index measured among 75 countries in the world, India stood at the forty-eighth position in the year 2000. Our ranking has been further lowered to the seventy-fifth position in the year 2001.
We, today, have 17 per cent of the world’s population. However, we share only a half per cent of the world’s trade and only 1.1 per cent of the world’s GDP. Our GDP growth rate in the 1992-96 period grew from 5.1 per cent to 8 per cent.
Today our revenue deficit is coming close to four per cent of GDP. National debt today is 85 per cent of GDP. We could be easily heading for an economic Debt Trap. Our prime lending rate today stand at 12 per cent. Our FOREX reserves today stand at about 50 billion dollars. Our debt and our Foreign Institution Investment constitute 95 per cent of these FOREX reserves. Foreign Direct Investment which is the real Harbinger of true growth today is at four billion dollars per annum in India, whereas in China, we have a rate of Foreign Direct Investment of 40 billion dollars per annum. Interest payments consume five per cent of our total revenues. This implies that in future all developmental expenditure, all capital expenditure must come from extra borrowings. Our fiscal deficit can either be lowered by decreasing expenditure for increasing revenue. Industry which is touted as an engine of growth is now spattering and there are concerns about the competitiveness of Indian industry on the world stage. The increase in agricultural production is just not enough to generate this growth. Therefore, the only other avenue that we can look at is an increase in investment. And in the last two years, the investment growth rates in India have been between 23 and 24 per cent of GDP as opposed to 36 per cent of GDP in China. Public investment in this Budget has increased by Rs. 9,700 crore which is only 0.4 per cent of GDP. So, it is quite clear that this increase in investment cannot come from the public side. So, the only other area we can turn to is really the private sector. Tax revenues and disinvestments, were the two main areas of shortcomings in the last year's Budget. Unfortunately, the hon. Finance Minister is relying on these two very areas to bring about an increase in revenues for the next Budget. Consumption growth today has fallen from 6 per cent to 2.9 per cent. India's tax GDP ratio today is one of the lowest in the world. Our Defence budget has been increased by a measly 5 per cent. The need of the hour is to modernise our armed forces. It is shocking to see that out of the Rs. 20,000 crore devoted to capital expenditure last year remained unspent. The hon. Finance Minister has stated that the funds raised from disinvestment will be used to enhance the social sector. Till date, we cannot see a clear implementation of this policy. The country requires a reform package with a human face. There are many social areas where its role will have to increase. The hon. Finance Minister in his Budget speech talked about "freedom to the farmers', when in fact, the Governments policies of procurement and pricing has led to only a growing suicide rate of farmers. Today, we, the Indian citizens, are very proud on the world stage because we have a surplus of food stocks. But the credit to that also must go to our farmers and our labourers. It was under the stewardship of late Shri Rajiv Gandhi that agricultural production was given a major fillip through the introduction of technology missions. Real public investment in agriculture has fallen by over 20 per cent since 1994-95. The maintenance of the irrigation systems and canals is in a major state of disrepair. Today, agriculture in our country is going through a resource squeeze.
The hon. Finance Minister in his Budget speech talked about diversifying crop patterns. There is no argument on that score. We must shift our attention to ensuring that there is a growth in the production of oilseeds and pulses of which even today India is a net importer.
The Food Corporation of India today holds a surplus of 60 million tonnes as opposed to a bufferstock requirement of 70 million tonne. The Hon. Finance Minister chose to remain silent on the road map to liquidate this excess bufferstock. It is shocking that we are faced with a situation wherein food stocks and being kept in the open and are rotting due to lack of storage capacities. In a country which is in a food surplus situation, we are still faced with a stark reality of starvation related deaths. The existing food stocks could have provided a massive Food for Work Programme to create employment and build infrastructure and it could have been used to target the 6000 villages.
Today, Rs. 4900 crore has been supplied for elementary education which is a grossly low figure. The nutritional support programme for primary school children has been given a marginal hike to Rs. 1057 crore from Rs. 1031 crore. How can the Centre and the States implement the Supreme Court order of providing free mid-day meal to all students with this amount of an outlay. It is not surprising that unemployment is rising in the country. Average growth of job seekers in the nineties grew at about 2.6 per cent per annum. In contrast to this, average employment growth in the last four years has reduced to a negative .1 per cent. Our cities are choking with pollution and the infrastructure is under tremendous pressure. This calls for not only a re-thinking on urban reform but also it is a call that we need to take industrialisation to the rural masses. Today, China has successfully implemented the concept of rural industrialist states. They have created special export zones that span 500 to 750 Kms. all in the rural hinterland. Employment through such schemes and such zones can be provided to the rural population.
SHRI TRILOCHAN KANUNGO : Every year in the last five years, deficit has been increasing and the gap between the BE and RE has been widening. In actual terms the deficit is much higher than the budgeted estimate. Fiscal deficit means total borrowing of this nation.
If during the last five years, the revenue deficit could not be decreased by one rupee, then how can the assurance that within five years to come, the revenue deficit would be nil? Unless and until that has been contained all these slogans and all the formulations of his speech has absolutely no relevance. Therefore, the House has the right to know what exactly the Finance Ministry is planning to do. I do not want to use the word failed. But he has not achieved anything. He has not done anything to contain the revenue deficit. Unless this is done all the announcements will go futile. A lot of things have been said about the budget being agriculture oriented. Why the agriculture labourers are called unskilled labourers. All States have lost, but poorer States lost more. Due to loss of tax revenue, Orissa alone is losing Rs. 600 crore during 2001-2002. How can the backward States manage such heavy burden? We have been demanding for revision of coal royalty. This has not been revised for the last five years. The backward State of Orissa alone has lost Rs. 1200 crore on that account. The Central Government should see to it that backward States come up. The States of Orissa, Bihar and Uttar Pradesh are suffering from backwardness. The Government will be surprised to know that in Orissa alone 120 per cent of the coal revenue is spent on loan repayment and interest payment every year. Centre is responsible for it because 70 per cent plan assistance is made by it. As a part of NDA we will support the Budget but our difficulties have not been removed. Unless revenue deficit is brought to zero level the country will not prosper.
SHRI H.D. DEVEGOWDA : Hon. Finance Minister while addressing FICCI angrily told that I am not going to honour the facts of economic survey. I am straight way coming to agriculture sector. We should come forward to help agriculture sector. Villages have no drinking water. About 40 per cent villages do not have school. I do not want to say that the country has not progressed. But that has not been evenly distributed. We also made certain mistakes. The buffer stock is today 55 million tonnes. Even then what is situation in rural areas. Why people are dying in rural areas? Why are the farmers committing suicide? This matter concerns the entire House. No one should forget that agriculture sector provides 60 per cent jobs. But farmers are not getting remunerative price for their produce. The Government have to take decision to remove restriction on transportation of foodgrains.
I do not want to oppose the idea of giving certain concession to industrialists. Today, the non performing assets is about Rs. 60,000 crore. Why cannot the Government give the same benefit to bail out the farmers? What sin the farmers have committed? My primary concern is that the farmers are committing suicide. I would like to know from the Government how many kisan credit cards have been issued by various banks. Let the House constitute a committee and go to any village and see the progress in villages? I am ashamed to say that the rural areas are still in a very pathetic condition. We should collectively find a way out. The money is concentrated in few hands.
There is no need to go to foreign investors with a begging bowl. Our taxation system is not working the way we wanted. I know, it is very difficult in a coalition Government to take any radical step. Even today basic facilities are not available in the villages. I don’t know which route the Government is going to follow on the question of disinvestments. A property worth Rs. 10 core is being sold for Rs.2 crore for which reason we are not getting the real value of the public sector undertakings that we are going to disinvest.
One more problem is about the plantation crops. Today, more than 80 per cent of coffee is exported by our country. Why do they want to import coffee when we are exporting more than 80 per cent? In what way it is going to benefit the coffee growers. Unless, the Government bail them out from the present crisis, about Rs.900 crore is the loan component and every year they have to pay Rs.130 crore as interest, they will not be benefited. Milk and milk products is the one area in which Dr. Kurien has put in all his efforts. We call him the father of milk movement. Once you allow the private sector to operate in this, that movement will be affected which is ultimately not going to help the milk producers.
We are importing about 4000 tonnes to 5000 tonnes of butter oil. They are getting it at the rate of Rs.75 per litre and are selling the adulterated ghee at the rate of Rs.105 per kg. Is it not going to adversely affect the milk producers? Today the worst hit is the agricultural sector. I would urge the hon. Minister not to allow them to die, commit suicide. Show me one industrialist who has committed suicide. I would dwell on one more point and that is about kerosene. During my period, we were also facing the same problem. When the matter came before me, I said, I am not going to increase even paisa on kerosene. But now who is going to lobby for the kerosene users. I, therefore, urge upon the hon. Finance Minister to reconsider this increase is cost of kerosene.
What over little they have given for the agricultural sector has been taken away by increase in the cost of fertilizer. I would urge upon the hon. Finance Minister to reconsider that surcharge on fertilizer. The same benefits should be given to the agricultural sector what have been given to the industrial sector as a non-agricultural sector. I hope that the hon. Finance Minister would look into some of these issues which I have raised and see that some remedial measures are taken to bail out the farmers and the suffering rural masses in this country.
KUMARI MAMATA BANERJEE: If I totally support this Budget, then my heart will beat me. If I oppose than also somebody can say, "You are in NDA and you are saying something". I feel that I should say the truth. There is no harm in making observations or comments or giving opinions. I do not know whether it is a positive or a negative Budget but it is definitely directionless. Though our financial position is not only bad but also we are facing this situation since long. But in the name of reforms, the Government can not take it for granted that only the poor class, the middle class and the common people would suffer. Is it not a fact that every year in the name of election we spend a lot of money for the party purpose? I would request the hon. Finance Minister to think about the electoral reform, give some money for State funding so that these big houses and the political parties cannot go for black money. I think, the political will and political reforms are needed. Due to increase in the prices of kerosene, domestic gas and fertilizer, the service class, the retired people, the unemployed youths and the small-scale industries are the victims. We should not sacrifice ourselves to satisfy only 100 individuals.
Since the last 10 years, there has been an increase of 400 per cent in the prices of domestic gas. Today not only the urban rich people use the domestic gas. It is used by everybody in this country. So, it should be reduced fully. I am really shocked to learn that the poor people do not use the kerosene oil because it is adulterated. If there is an adulteration, who is responsible for this? The Government machinery is responsible for this. The Government cannot increase the price of kerosene oil as it has been used by the poor and the poorest of the poor in this country. Sixty per cent of our people are agricultural people. But now the Government increase the fertilizer price. If the Government do this who will be feeding us? All the essential commodities have been touched. Where will the common people go? Further, I would like to know from the hon. Minister that how many times a single individual has to pay tax? There must be a uniform policy for that. Some States are imposing sales tax on essential commodities also. So, I request the hon. Minister of Finance to please request the State Governments to reconsider the tax on essential commodities because it hits the common people.
The lowering of interest rates on savings and investments is most unfortunate, especially in the case of small saving instruments. Last time, the interest rate was reduced by 1.5 per cent. This time, it has been reduced by 0.5 per cent. For crores of people, after retirement, this is their only source of money for giving their children. So, I would request the hon. Minister of Finance to give a re-thought to it. It is unfortunate that only the common people have to suffer when there are many people who have black money. Why is it that there is more taxation for the common people? Why is it that there is not much taxation for the blacklisted industrialists? These people, who are the defaulters, are the criminals of this country. The Government have not given any attention to the small scale industry. Small-scale industry is supposed to be providing employment generation through job-oriented programmes. In our country, there are more than three crore registered unemployed youth. I have been saying from the beginning that there must be a Government programme ‘Berozgari hatao’. I appeal to the Government, through you sir, that a special session must be convened to discuss the matter of unemployed youth, because it is the main problem in this country.
Regarding the five per cent surcharge, why should it be for all? There must be some policy. Every citizen of this country has the responsibility to help the motherland. Impose one per cent surcharge on every taxpayer, but impose ten per cent surcharge on big business houses, the corporate sector. Common people use only the postcards and envelopes and their rates have also been hiked. I would request the hon. Minister to think about this matter seriously so that the common people are not affected.
I would request the Government to not increase the taxes on the books being published. The Government is planning for disinvestment of every public sector unit. We appreciate the modernisation plan and the comprehensive plan of action. But it does not mean that every public sector unit has to be closed down. In my State, there are maximum number of public sector units existing. The Government are closing down everything. Our request to the hon. Minister of Finance would be to please re-think the matter and please see about this. On the one side there is unemployment and on the other side the common people are going to be victimised. The Government are saying about VRS. In a democracy Government means it is a Government for the people, of the people, and by the people. But, if the Government pressurises the common people, the middle class people, the poorest of the poor people, then what would be the definition of the Government? Our request to the hon. Minister of Finance is that he may reconsider this proposal.
SHRI K. MALAISAMY : I understand that a Budget should be balanced and the income and expenditure should be almost equal. The estimates should be realistic, exact and rational. There should be a target and an achievement. There should be a promise and there should be a performance.
Our hon. Finance Minister has got the greatest credit of presenting the five Budgets. In the first Budget, the promise given was that the bottlenecks in the infrastructure sector would be removed. Then, what is the performance? The second promise given on that year is to revitalise the capital market and improve the fiscal situation. But the fiscal situation has worsened. In the next Budget, the promise given is that the Industrial Development (Regulation) Act, will be amended so that the primary focus is shifted to the development of industries. This is yet to be done. Then the promise given is to amend the Recovery of Debts due to the Banks and the Financial Institutions Act, to strengthen its provisions. It is yet to be done. This promise was also given to strengthen the India’s role in the world economy through the rapid growth of export and higher foreign investment. It is not realised. Then, the promise given is to establish the credit framework and fiscal discipline without which other elements of India’s strategy could fail. The achievement is that the fiscal mess remains. The promise was also given to amend the Industrial Disputes Act and Contract of Labour Act, for removing the external rigidity, but the performance is yet to happen.
It seems there is a political will, but unfortunately, there is no skill to execute that political will. The country as a whole and the States in particular are passing through the greatest financial crisis. In that situation, the economic growth has fallen, and the fiscal deficit has gone up. In spite of having huge foreign exchange reserves, a huge stock of foodgrains and the privatisation process being very much transparent, fiscal deficit is going up.
As far as the economic reforms are concerned, the first part has already been executed. However, the rate of industrial growth, which has been pegged at 2.3 per cent, is an all-time low in the last decade. In this situation, how is the Minister achieve what he has projected in his Budget. The Minister has to do something concrete.
I would like to point about the increased tax burden on the middle class. The hon. Finance Minister has levied an excise duty of eight to nine per cent on hard yarn. I have not been able to understand the concept behind levying of excise duty on this. The hon. Finance Minister has proposed to levy taxes on cable operators, travel agents, imported coffee and all such areas. Levy of additional tax and re-introduction of dividend tax will only make the demand static and would never allow the demand to grow. Almost all segments of the society are unhappy and are dejected by this.
Fiscal deficit is the greatest problem for the Finance Minister. My suggestion in this regard is that the Government should think of a special exercise, a separate exercise of expenditure reform. The most shocking area is that the Government paying a substantial amount of the resources by way of interest payment. How are the Government going to control that? There is the question of consumer demand and investment. The Government can think of certain areas like the labour market, the agriculture sector, privatisation of State Assets and such other areas.
How far the policy of liberalisation, globalisation and privatisation has had its impact on the Indian economy is a debatable question. How is the Government going to protect the industry? The Government has to take steps to safeguard the livelihood of lakhs and lakhs of their employees.
Out of the total tax revenue collections of the Centre, 29.5 per cent is being shared with the States. It was promised that out of the estimated collection of Rs.3,300 and odd crores, Tamil Nadu would be given its share. Based on that, Tamil Nadu made its planning. However, for various reasons, the collection was not up to the estimated level. Tamil Nadu is not getting the money it was promised. Tamil Nadu has requested the Central Government to at least give that amount by way of loan, an open market loan. But this has not been done. The Government is giving relief to Punjab farmers who have been affected by the flood. Why should this not be done in the case of a farmer in the Cauvery belt? Why should the Government be discriminated against? Under MPLAD Scheme, the Government is giving Rs.2 crore. It should be raised. I want to thank the hon. Minister for his reaction in regard to the Sethu Samudram project. I would request the hon. Minister to kindly get over with it and see that the project is implemented speedily.
SHRI P.D. ELANGOVAN : With the zeal to restructure Indian economy and with a long term perspective to usher in a bright future for the country, Finance Minister has come with this Budget. On behalf of my party Pattali Makkal Katchi and on behalf of our founder leader Dr. Ramdas, I welcome this Budget. In order to improve the lot of the farmers certain measures have been spelt out in this revolutionary Budget, giving a boost to our agro-economy and a fillip to our agro-based small scale industries. Infrastructure development pertaining to agriculture sector and enhancement of loan funds from Rs. 64 thousand crore to agriculturists are commendable.
Swarna Jayanthi Swarozgar Yojana and Jayaprakash Rozgar Yojana have been introduced through this Budget and 50 lakh tonnes of foodgrain have been set apart for the Sampoorna Gramin Rozgar Yojana. In this budget infrastructure of Surface transport, highways, power sector, ports, civil aviation and communication are sought to be strengthened. The commendable power sector reforms and the insistence of the Centre to adopt the reforms regime and Centre’s efforts to impress upon the State Governments are quite encouraging. Formulation of a seven point Urban Development Plan, with an exclusive fund and the proposed impetus to Tourism Development are welcome features of the Budget. Infrastructure Development gets an allocation of about Rs. 37,919 crore. Several incentives and credit facilities have been proposed in this year's budget. Extending loan upto Rs. 5 lakh to small entrepreneurs even without security are widely acclaimed measures. Excise duty on cloth and the garments have been reduced. There is a reduction in the corporate tax levied on the foreign sector from 48% to 40%.
‘Sarva Shiksha Abhiyan’ introduced through this Budget provides for free and compulsory education to all children between the age of 6 and 14. Enhancement of allocation for primary education from Rs. 4000 crore to Rs. 4900 crore is a move to make a prosperous future. Children especially girl children must have education upto middle school level and we must overcome the dropout rate in schools. Literacy rate is poor in Dharmapuri and Udaghamandalam districts of Tamil Nadu. I urge upon the Centre to include these districts also in the targeted area literacy programme. As a social security measure a new pension linked insurance scheme called "Jan Raksha’ has been announced. We also find several schemes for the welfare of women, children, Scheduled Castes and Scheduled Tribes as salient features of this Budget. Efforts to give a new thrust to Indian system of medicine, science and technology, entertainment industry are heart warming moves of the Government.
Disinvestment of public sector units have not yielded desired results. The jobless workers have not been assured of their socio-economy security. Hence we urge upon the Union Government to go slow and take adequate care in disinvestment and privatisation of public sector units. Now the profit making Neyveli Lignite Corporation is about to be privatised. On behalf of my party PMK, I would like the Centre to rescind this decision. According to a UNDP report, as for Human Resources Development, India is placed in the 100th position among 137 countries. So this year 2002 is being observed as ‘the Year of Quality Education’. Centre should take concrete steps to put an end to starvation deaths. Centre has identified 12,200 jobs surplus and this would only aggravate unemployment problem. There is no guarantee of jobs when privatisation is at full swing, the Government may therefore take steps to make it mandatory for the private sector to have reservation in jobs.
Our economic growth rate is pegged down to 5.4%. Factors for this deceleration and stagnation in economy must be identified. Rise in prices of kerosene, LPG cylinder and removal of subsidy on fertilisers like urea would affect the poor, the middle class and the farming community as well. Hence I urge upon the Government to withdraw this move at this juncture.
SHRI MADHUSUDAN MISTRY : I wonder about the basis on which the allocations are made in the Budget. Two years before, the hon. Minister in his Budget Speech had said that 320 million people are living below the poverty line and this year the Economic Survey says that 260 million people are living below the poverty line. So it is a reduction of almost 60 million people in just a span of two years. However this House should once and for all decide the methodology or criterion of calculating the number of people living below poverty line to know their actual number in the present context. People living below the poverty line should be provided with social security and work. In Gujarat take the total amount spent on such a scheme and divide it by the minimum wage, whatever number comes is taken as the man-days work done. Work does not in fact suggest that money has really gone into the pockets of the poor. On all the major schemes in the social sector and for rural development we are spending only 1.1 per cent of the GDP. This financial strategy itself does not allow people to come up above poverty line. If you look at all those highlights in the RE you will come to know that allocation of Rs. 74 crore in the BE has been reduced to Rs. 8.21 crore at the RE stage. In respect of welfare of SC schemes, Rs. 43 crore was allocated in the BE and at the RE stage it was reduced by 1.9 per cent. Even in respect of schemes like Annapurna, Swarna Jayanthi Gram Swarojgar Yojana they have reduced the allocation. We have very little amount left, in fact, for the schemes and programmes related to the poor. We spend nearly 61 per cent of the total disbursement towards loan repayment and interest payment.
As per Article 292 this Parliament has to fix a limit on borrowing. PAC has also made its observation that never a limit on borrowing was fixed. That’s why we now do not see money even for various essential schemes. Though it is a growth-oriented Budget, in fact, it creates only a few jobs. In my State, it has created only one lakh jobs in the last ten years. In the Industrial Disputes Act, if an establishment with less than 1000 employees wants to close down, then it can go after paying a certain amount of money. Enforce closure after making payment under Minimum Wages Act. It will bring quite a lot of people above the poverty line. Millions of labourers never get the minimum wage and there is permanent languishing among the people living below the poverty line.
Please try your best to ensure that the Narmada Yojana in Gujarat is completed as early as possible and all other infrastructure facilities which the State requires, are provided.
SHRI HASSAN KHAN : North-East and remote areas have been exempt from the Inland Air Travel Tax under Section 44 of the Finance Act of 1989, though all thirty stations in these areas have links either by sea or by land. Ladakh does not have any link from any part of the world for six to seven months. The only mode of travel is air for this region during these times. So my submission to the hon. Finance Minister is that this exemption may kindly be extended to Ladakh region also. So far the Civil Aviation Policy of 2000 has not included Ladakh in that Policy.
SHRI PRABHUNATH SINGH : The funds released for rural development are not being utilized properly. So we want to know where these funds are being diverted? Nobody can deny that our agricultural output has increased during these years. We have good agriculture scientists and agriculture science centres but even then the benefits are not reaching the farmers in time. Such agriculture science centres should be opened in every district so that farmers may get their benefit in time. A new policy has been framed for such states which do not have any storage facility. This policy should be extended to Bihar also. The Centre should see in how many states farmers have been issued credit cards and whether the farmers of Bihar are also being given this facility. Government claims that farmers are given loan through cooperative banks but in fact all sorts of scams are taking place in these banks. In Bihar almost all cooperative banks have been closed. It is said that these banks were running without any licence for the last 20-25 years.
Government has started several schemes to give jobs to unemployed people. It should be seen that how many unemployed people are being given loan for self employment. In Bihar, villages have been electrified only on papers because the Centre does not monitor the use of funds allocated for this purpose. The funds are spent merely on papers. Several schemes, namely Gram Simridhi Yojana, Sampurn Rozgar Yojana and Lok Nayak Jai Prakash Narayan Employment Guarantee Schemes have been launched. In these schemes, utilisation of funds should be monitored, because out of the allocated money, more than 50 per cent is left unutilised. Three instalments have been issued to States under Gram Sadak Yojana. But not even a single instalment has been released to Bihar. Government claims that this work will be completed by 2005. But how? We have urged the Government that they should engage some other agency on this job, in case the State Government is not utilising the allocated funds. The targeted people are not getting kerosene from PDS. Make the sale of kerosene open. Once the Government had made increase in LPG prices, then it should not have withdrawn the increased price partially. In villages, LPG agencies do not get more than 50-80 consumers even in three-four months. Merely about 3.5 per cent villagers use LPG. Subsidy should be given to farmers to grow fuel wood along their farms so that they may utilise it for cooking and do not make pollution. As for MPLAD Scheme funds are concerned, this amount of Rs.2 crore should be withdrawn because the Government trusts their bureaucrats more than the Members of Parliament. If the Government wants to see the MPs in a respectable position, the Government should increase the amount of MPLADS. Disinvestment of PSUs is going on nowadays and it will ultimately lead the country to economic slavery. For want of jute, 5 jute mills have been closed down in Bihar. Barauni fertiliser plant has also been closed down. It should also be revived.
DR. RAGHUVANSH PRASAD SINGH : Urban as well as rural people use LPG. The Government had initially effected an increase of Rs.40/-on LPG cylinder which was later curtailed by Rs.20/-. The expenditure of farmers have increased manifold and they are committing suicide but on the other hand, credit cards are being issued to farmers. In this Budget, fiscal deficit has increased, whereas revenue has decreased. Last year, Bihar was not able to repay the outstanding loan of centre so it is not getting any fund from the Centre. The IDBI loan and bank loans amounting to Rs.82 thousand crore are outstanding. The rich people have an outstanding income-tax of Rs.62 thousand crore. But, there is no mention of it in the Address. Security surcharge is being levied on poor and middle-class people after having collected donations from them for earthquake victims and Kargil surcharge from them. This directionless budget will create more problems and increase unemployment. Foodgrain worth Rs.185 crore have perished due to inadequate storage facility. On the one hand foodgrain procurement is not taking place, whereas on the other hand, there is not adequate storage facilities for foodgrains. They are simply changing the names of various schemes, such as Jawahar Rozgar Yojana was given the name of Jai Prakash Narayan Rozgar Yojana. With such tricks, we cannot execute any major work. In Pradhan Mantri Gram Sadak Yojana, a wrong commitment has been made that all weather road would been constructed. In the past, under RADGP, NREP, Employment guarantee scheme, the villages were inter-linked with the brick roads which have now broken and thus thousands of our villages still do not have any road link. Pradhan Mantri Sadak Yojana has not been started in Bihar. Tricks are being played in power sector. A APDP programme was launched under which first instalment of Rs.1000 crore were released in 2001-2002 and the next year, Rs. 15,000 crore were released, but not a single pie was released. In such a condition, what is the utility of providing 50 per cent loan and grant to the State Government?
Under Pradhan Mantri Gramodaya Yojana, Bihar was given a grant of Rs.6 crore. In it, two-third amount was in the form of loan and one-third part of it was in the form of grant. Can rural electrification take place with such as meagre amount? No allocation was made to Bihar for electrification during the years 1996-97, 1998-99, 1999-2000. For the first time this year Bihar and Jharkhand have been allocated Rs.37 crore, out of which we will get 9 crore and the rest of three-fourth amount, that is Rs.28 crore will go to Jharkhand, despite the fact, that Bihar has a population of more than 8 crore and the population of Jharkhand is merely 2 crore 7 lakh. Besides that, Bihar has comparatively larger area and more villages in it. Can Bihar be electrified with such small financial allocations?
After fifth pay commission, the State Government have to bear more burden of increased salaries of their employees but even then Centre has not rendered any help to the State. During Ninth Five Year Plan, Rs.4800 crore were spent on Centrally Sponsored Schemes. Out of this amount Rs.480 crore should have been released to Bihar and Jharkhand. In Ninth Five Year Plan, Rs.4800 crore were spent on Drinking Water Project. One-tenth of this amount should have been given to Bihar. After division of States, Bihar has a financial deficit of Rs.3000 crore. We have to repay loans of Rs.2100 crore. In such a condition no development can take place in Bihar.
Outstanding central loan on Bihar should be waived off. Bihar should be given the status of special state because it generally gets affected by natural calamities like flood, drought and water-logging and fulfils four out of five criteria set for declaring a State as `Special State'. On the direction of RBI, Sen Committee had also toured Bihar. In Bihar, one lakh hectare land in Mokama and nine lakh hectare land in Northern Bihar is water-logged. Every year, this area receives flood water. To solve this problem, a river water agreement should be made between India and Nepal and measures should be taken to control floods, out-letting of logged water and proper irrigation. Finance Minister has promised a economic package to Bihar and the Tenth Pay Commission has also assured that every year, Rs.150 crore will be released to Bihar under Panchayati Raj head. So, I will like to ask the Minister as to what happened to this amount of Rs.625 crore. The Sindri Fertilizer Unit in Jharkhand and Namrup unit have been reported viable so these should be revived. Barauni fertilizer unit is also close. That should also be rehabilitated. I oppose this anti-poor, anti-farmer and anti-people budget.
SHRI DEVENDRA PRASAD YADAV : I rise to speak on General Budget for the year 2002-2003. More than 75 per cent of our population depends on agriculture but so far only 63 lakhs to 1 crore farmers have been issued credit cards. We are not giving proper attention to the main problem of farmers, i.e. providing them remunerative price for their produce. Our food grains stock has reached 60 million tones. Today farmers son is protecting our borders, he is fighting against global terrorism but poor farmer is hungry. Our country can not prosperous unless we make our farmer happy.
Minimum support price for the paddy was fixed at Rs.530 a quintal. I would like to cite an example as to how far it is beneficial to the farmers. Last year food grains production in Bihar was 123 lakh metric tones but merely 60636 metric tones was procured. Whereas the procurement in Punjab was to the tune of 70,83,215 metric tones. Duel policy is adopted in this regard. Bihar is meted with step motherly treatment. If procurement is made honestly in Bihar it will fetch Rs. 2000 crores to the farmers. 40 procurement centers were opened but only 20 are operating at present. In case of P.D.S., grains should be taken from the concerned state itself, if available. It will reduce the transportation cost substantially.
During Doha conference efforts were made to project our case strongly but it proved futile. Approach Paper released in Doha recommended for reduction in domestic support price gradually. In lieu thereof we would bring down export subsidy but it will have dire consequences in our country. European countries and even America are giving 250 percent subsidy to its farmers whereas they are asking us to reduce MSP. The day we depend upon other countries for agriculture products our prosperity will diminish. Today 75 per cent of our population depends on agriculture. If the Government do not take steps to prevent India becoming a ‘dumping ground’ of overseas foodgrains there would be a hue and cry amongst our farmers. The farmer who produce sugarcane, cotton and rubber are committing suicide which is nowhere in the world. We requested the Government to tax Gutkha, Rajdarbar and liquor whereas liquor, especially foreign brand have been made cheaper and kerosene oil dearer, Laptop computer and Mobile phones cheaper and Urea dearer.
SHRI S.D.N.R. WADIYAR : The Budget has to be opposed as it is not growth-oriented and it is anti-farmer and anti-poor. The Minister has tried to paint a rosy picture in his Budget Speech. The rural infrastructure is not just roads but includes water supply, drainage, electricity, village-to-village connectivity, roads within villages and things like that. There should be planned development of villages. In villages, many schools hardly have one classroom for one standard. Many schools do not even have one classroom for on standard. There are inadequate teachers in the schools. Action may be taken to ensure water supply and rural connectivity by way of roads.
The restriction on movement of agricultural products and their storage is being removed. I would like to know from the Minister how is he going to protect the farmers as also the produce from speculators, hoarders and black-marketers. It is essential to improve the quality of the agricultural produce and achieve the target set for agricultural export. Agricultural research and technology is essential. It is also essential to increase the quantity of the produce and reduce its cost.
There is a need for maintaining roads. The need of the hour is that we should provide for metalling of existing roads, maintenance of roads and making new roads. Hardly any provision has been made for roads inside villages. India has to be at par with the other developing countries in terms of its infrastructure.
The Central Government can generate electricity using the gravitational flow of rivers. It is cheap to produce hydel power. The Minister of Environment should be given direction to clear such pending projects. Reforms in the power sector are essential. One thing is generation and second thing is distribution. I would like to know the plans of the Government for generation as well as for distribution.
Urban areas have become breeding grounds of anti-social and terrorist elements. The amount of Rs. 500 crore which has been allotted is not enough. There are hundreds of large metropolitan cities and towns. Therefore, Rs. 500 crore is a peanut of providing amenities in such areas. Most urban areas lack adequate underground drainage system. We also need efficient and good garbage management schemes. We need all weather roads. We also need flyovers to ease traffic congestion. A cheap and efficient public transport system is very essential.
Private participation should be invited. The interest of the public should be safeguarded at all times. We should impose expenditure tax on some other services which are provided by the hotels. I do not understand why the Finance Minister has not allowed a corporate with proven track record to invest and set up institutions and universities abroad. The countries like USA and Australia have very good social security system. Therefore, we should learn from them and apply those schemes here.
The proposal regarding health insurance is quite good. The amount of Rs. 3000 for indoor patient and Rs. 2000 for outdoor patient in a notified clinic is too less. Insurance cover should be equivalent to half of the treatment amount. A policy in that direction would be a welcome step. The Finance Minister has levied 5 per cent surcharge on income tax on certain assessees. Perhaps a small percentage of this can be diverted for the national insurance. A National Health Insurance Scheme for covering the entire population should be continued.
The middle class has contributed to the economy. The Finance Minister has planned to hit below their belt by taking away whatever small incentive for investment was there. Taking into account the inflation, the Finance Minister should have increased the taxable slab from 1.5 lakh. I would suggest that he should have gone in for 10 per cent tax between Rs. 1.5 lakh and 2.5 lakh; 15 percent tax between Rs. 2.5 lakh and Rs. 3.5 lakh; 20 percent tax between Rs. 3.5 lakh and Rs. 5 lakh; and 30 per cent tax above Rs. 5 lakh of income. The duty on agricultural products should have been increased to at least 250 per cent. At the present juncture, I feel that some of the steps taken by the Government are detrimental to the interest of farmers and agriculturists of this country. I request the Minister to move with caution and take steps after consulting all the political parties on this aspect. Some help should be provided to the coffee growers.
SHRIMATI JAISHREE BANERJEE : I would like to thank the Finance Minister for presenting the Budget after preparing a long term programme keeping the future in view. It is very essential to reduce the subsidy and also fiscal deficit so as to strengthen the economy. The Minister has done a lot for the benefit of the farmers in the country of farmers. In Madhya Pradesh the amount given is not fully utilized. Since Madhya Pradesh is predominantly inhabited by Adivasis, the amount of central assistance to the State should be increased. When I visit the rural areas I find that there is no arrangement for latrines and water supply there. I thank the hon’ble Prime Minister for paying attention towards rural water supply and connecting cities and villages by roads for their development.
The hon’ble Finance Minister is requested to increase the rate of interest on fixed deposits because people make fixed deposits for their old age. The rate of income tax on Government servants should be reduced. The excise duty should be increased and the price of liquor should be increased to any extent. The price of gas cylinder should be further reduced. The Government should provide relief to the banks which are running on loss or have since been closed.
I would like to make a submission about Jabalpur in Madhya Pradesh. Though river Narmada flows in Jabalpur the people have no water to drink. They do not get money for water supply and even if money reaches them, it is not utilized. I hope that the Government would pay attention to this aspect.
SHRI SURESH KURUP : The Budget fails to address any of the problems faced by our economy. It neither delivers higher growth or employment nor it makes any concerted attack on poverty. It is nothing but an assault on the poor since it had hiked prices of almost all the essential commodities, like kerosene, urea, sugar, LPG cylinder and even postal rates. The Minister while giving foreign companies a huge tax reduction in their profits from 48 per cent to 40 per cent, leaves no stone unturned in raising direct tax revenues, especially from the salaried segment of the population by raising the tax from them and also by lowering the interest on small scale deposits.
The salaried middle class is always there to get the slap on the face in every Budget as every one knows it is the easiest way to mop up resources. The extent of mismanagement of the economy is evident from the steep fall in tax collections. The State Governments are deprived of the lion’s share of the fiscal assistance due to them from the Centre which, of course, added to their fiscal turmoil. The Budget imposes certain conditions on the States. The State Governments are asked to adopt World Bank and IMF type reforms. Those State Governments, which may have serious differences of opinion regarding the policies pursued by the Central Government, are going to be discriminated against.
If you look at the shortfall in revenue, you can see the major decline in custom tariffs. In these years of liberalisation, the most substantial reductions have been effected in import taxes and customs duties. Though increased trade and thereby increased customs revenue were expected yet the huge shortfall in customs duty collection itself shows that the reduction in duty was in no way accompanied by increase in trade. The increase in excise duty would be a burden on all sections of the population including the rich and the poor alike and would be a real jolt for the poor and the middle class. The failure of the Central Government in revenue generation and the unmindful borrowal from the open market at higher rates of interest will definitely make the situation worse. The Government should utilise the food it has at its hand to launch a massive Food for Work Programme which would help in building capital assets in rural areas and give an impetus to economic growth. The income disparities are increasing year after year. The poor are at a loss to understand why they are not eligible to get food even though foodgrains are rotting in the FCI godowns. This Government which actively encourages communal ideology all over the country and systematically attacks the minorities, cannot develop this economy.
SHRI SUKDEO PASWAN : Hon. Finance Minister had said that the country is poised for diversification in agriculture and fertilizer and live stock revolution. For this purpose there is a need to stress upon policy changes, research in the field of agriculture and expansion of it, afresh. Advanced rural security is essential. Liberalisation is main motto of our policy. If a farmer is granted loan before sowing season it can provide better agricultural yield, which would be beneficial to the nation. During crop season, when farmer goes to grain market for selling his produce in fact he finds no taker. Financial aid for construction of house under Indira Awas Yojana should be increased to a minimum of Rs.50,000. So that last man of the society can derive benefits from it. The prices of Urea, Potash and Calcium fertilizers have been increased incommensurate to the price of agriculture products. 90 percent of the people in the country, especially my constituency use kerosene oil which they get from black market. Hon. Finance Minister should roll back the hike in kerosene oil. In fact, the price of T.V. , Fridge, cigarette, liquor and other luxury items should have been increased and the price of items of utility of common man and middle-income group should have been reduced.
When the Government of V.P. Singh, Devegowda ji was in power several concessional schemes meant for farmers were launched and even the declaration was made for writing off of loans granted for purchase of tractor to the farmers. It benefited several farmers. I hope the present Government led by Shri Vajpayee ji would definitely give relief to the farmers. Schools should be opened in SC, ST, and OBC predominant areas and even for minority classes so that their children can study. I demand construction of a Rail-over-road bridge over river Ganga in Munger in Bihar.
SHRI JOACHIM BAXLA : I rise to speak on General Budget for the year 2002-2003. I feel that the budget presented by hon. Finance Minister is a directionless budget. It is anti-poor, anti-old age persons and anti-farmers. The price of kerosene, which is used by majority of the poor people, has been increased. This price hike should be rolled back. Today the condition of the farmers is already pitiable, whereas the prices of Urea and MOP are being increased. The Government should reconsider it and withdraw the price rise.
Pradhan Mantri Gram Sadak Yojana is not being implemented properly. Hon. Prime Minister had declared that one crore unemployed youths will be provided employment but the problem of unemployment is increasing at an alarming rate. The Government propose to retrench 42,000 employees by declaring them surplus. So far as disinvestment is concerned, even profit making public sector undertakings are sold out to private sector at throwaway prices. It is not in the national interest. I warn the Government that the Government should review its present policies otherwise our country will have to go through tough time.
The intention of the present Government is such that it want to benefit the MNCs. The Government desire that these MNCs should come to India and take over our all PSUs. Our economic policy should be in favour of common poor men. 54-55 years have passed since our independence but the gap between the poor and the rich is widening further. I oppose this type of economic policy and I desire it to be changed.
SHRIMATI KAILASHO DEVI : I rise to speak on the General Budget for the year 2002-2003. I would like to congratulate hon. Finance Minister since keeping our grim financial conditions he has presented the best possible budget. Budget allocation for accelerated modernization of agriculture has been increased from Rs.684 crore to Rs.775 crore, which is a praiseworthy step. In addition, for creation of employment in rural areas Jai Prakash Rozgar Gaurantee Yojana has been introduced. A provision has been made for crop insurance scheme also. The Finance Minister has reiterated his commitment for providing maximum possible funds for strengthening of infrastructure, such as roads, electricity, drinking water and telecommunication services.
The Finance Minister has done injustice to the farmer community by increasing prices of fertilizers and also decreasing the subsidy on fertilizers. Extra burden has been put on a common man by increasing the price of kerosene, postal stationery and LPG. I demand that this price hike should be withdrawn. Coming to rebate on income tax, the rebate has been reduced from 20 to 10 per cent. Several big projects, such as Sardar Sarovar Dam, SYL, Dadupur Nalvi Canal, Panipat Refinery, Yamuna Nagar Super Thermal Power Plant have been pending since long. If these all projects are completed it can provide employment to lakhs of people. Such projects should be completed even at the risk of capital.
Food for Work scheme has not been implemented properly. Though there are 40 crore farmers in the country but so far only 2 crore farmers have been issued Kisan Credit Cards. Wheat season is approaching, therefore, a minimum support price of Rs.700 should be declared without any delay.
SHRI BIR SINGH MAHATO : The hon. Minister of Finance has presented a rosy picture through this Budget Speech but the Economic Survey reveals the bleak picture of the economic performance of the Government. The Government has miserably failed to address the burning problems facing the country, be it industrial slowdown, be it unemployment or be it agriculture. The most affected victims, through this Budget, are the middle class and the lower class people. The fiscal deficit of 5.3 per cent of the GDP is an alarming indication. The country is paying one-fourth of its receipts as interest. The Budget has not taken into account the urgent need for revival of sick industries. On the other hand, the Government has de-reserved the small-scale units. The Government has taken no concrete steps to unearth the black money. The external debt is Rs. 68,519 crore and the internal debt is Rs. 10,21,739 crore. Therefore, this Budget is not growth-oriented. It is directionless and anti-poor. So, I oppose this Budget.
DR. RAMKRISHNA KUSMARIA : The Finance Minister has presented a very balanced, farsighted and welfare oriented Budget. By providing infrastructure to Pradhan Mantri Sarak Yojana and rural development it will definitely be good for the farmers. Fifty per cent has been provided towards Tourism. In Bundelkhand there are several tourist spots. If these are developed then definitely the most backward place Bundelkhand can be developed. Similarly, there was a refinery in Bina, it had to be set up with the assistance of Oman but due to delay the Oman has withdrawn itself from this project. If steps are taken in this regard it will definitely be a good step in the direction of development in Bundelkhand.
Due to hailstorm my Parliamentary Constituency has suffered a lot. Last time you had introduced Crop Insurance Scheme but the State Government have not implemented it. I request you to take stern steps to implement it. Sufficient amount has been given by the Centre to Madhya Pradesh under Pradhan Mantri Sarak Yojana. But this amount has not been utilized fully. Therefore, I request that State Government should utilize this and use this amount for the purpose it has been released. We cannot neglect the development of farmers. The things being used by farmers should be taken into consideration so that maximum production can take place.
SHRI ADHIR CHOWDHARY : The Budget is replete with economic ad hocism and spasmodic impulses in an apparent bid to stimulate the economy. The hon. Minister of Finance has resorted to a slew of harsh measures which have been affecting all sections of our country. The hon. Minister has adopted such measures at the cost of economic sovereignty of our republic. He deserves to get credit that during his tenure, as per the Human Development Index, India is now at rank 115. As per the power parity purchasing, India stands as the fourth largest economy in the world. I am worried about the fact that the value of our rupee is falling sharply. It may help export lobbies, but we have serious trade imbalances. The per capita income of our people is also declining. The consumer market has also fallen. As per the data released by the Reserve Bank of India, our external debt stands, at US $ 98.3 billion. Forty per cent of our GDP is still unaccounted black money. Therefore, our economy is heading for a debt trap.
When our relations with Pakistan is getting tense, the capital expenditure for the Army was merely just Rs. 21,441 crore. I would request the hon. Finance Minister to exempt the Army from the security surcharge because they are already offering blood for the safety and security of our country.As far as agriculture sector is concerned, it is also showing a jejune performance. Our industry is growing at a low ebb of 2.3 per cent. Our fiscal deficit is growing and inflation is at a low ebb.
SHRI G.M. BANATWALLA : I would like to draw the attention of the Government to the most pathetic socio-economic conditions of the minorities, particularly the Muslims. I know that there are certain measures and schemes being implemented by certain Ministries. But then they are neither adequate nor do the benefits actually reach the minorities in full measure.
Minorities Financial Development Corporation. It has still not received its full Corpus. There is a need for not only providing a corpus but also providing for a substantial increase in the Corpus Fund and the amount should be given by the Central Government. There are a few traditional occupations of the minorities. There is need for the development in the spheres of these traditional occupations. A Commission or an Expert team could be appointed in order to study the situation and for suggesting measures for the development in the spheres of the traditional occupations.
The Finance Minister claims that the Budget is for consolidating, widening and deepening reforms. We find that the Government have miserably failed in accelerating the growth of economy. The cut in small savings rate would create difficulty for small investors, for senior citizens and others. There is failure to raise the minimum tax exemption limit too, which results in increase in the taxation burden on the common man. Increase in LPG price, price of kerosene, postal rates, cut in fertiliser subsidy, increase in the price of sugar sold through ration shops, all will have an adverse affect on demand. I, therefore, would request the Government to reconsider these measures.
The thrust of the budgetary policy is on taxing the middle-class people, favouring multinationals, giving tax benefits to foreign companies. This is at the cost of Indian economy. The Budget fails in effectively dealing with stagnation in agriculture, industry, growing unemployment. These matters require serious consideration at the hands of the Government.
SHRI P.C. THOMAS : The rise in prices of kerosene, fertiliser, postal rates etc. may be considered for rollback. With regard to agriculture, the most important aspect to be looked into is to see how the farmer can be empowered by giving a better price for his produce. For tea, the excise duty has been reduced from Rs.2 to Re.1. I would like to say something about rubber. Unfortunately, the normal farmer who is producing the natural rubber is not going to get the full benefit of the declarations made by Finance Minister in this regard. I would urge upon the Finance Minister to do soemthing in this regard. Export has been given a very good thrust as far as agricultural exports are concerned. I would urge upon the Finance Minister that subsidies in this respect have to be given and considered, and also the agricultural exports have to be increased. I would submit that some impetus has to be given to crops like rubber, tea, coffee, arecanut, cashewnut coconut and such other crops which are not generally mentioned when we speak of agriculture. In the fishery sector, I would like to submit that the Finance Minister should declare some benefits to the fishermen who are in real doldrums. With regard to our traditional medicine we must have an all India centre with full facility for our Ayurvedic system as well as Homeopathy.
SHRI K.H. MUNIYAPPA : Budget for the year 2002-2003 shows the extent of anti-people, anti-farmer policies adopted by the NDA Government. I suggest that Rs. 10,000 crore Revolving Fund may be established to take care of the farmers who are suffering huge crop loss due to untimely rains, drought situation and also due to unstability in the prices of the agricultural products. With regard to the Kisan Credit Cards, the farmers belonging to the Scheduled Caste and the Scheduled Tribe communities are not able to pay the monthly premium. I suggest that their premium may be written off. Due to unstability in the prices of the agricultural products, there are suicides by the farmers. The Government has to protect the farmers. As far as water problem is concerned, I would request that other rivers should be linked with Ganga and Mahanadi. Regional Rural Banks were created to give money to the farmers on no profit no loss basis. Now, the Government is going to close it down. I feel that it will not serve the purpose for which it was created. The social justice sector has not been provided even one or two per cent amount of the total allocation to this sector. There is a need to start Navodaya Schools like institutions to help the poor people.
SHRI K. FRANCIS GEORGE : The Finance Minister has not applied his mind to the long standing demand of the farmers, especially the cash crop cultivating farmers. He has raised the duty on tea and coffee to hundred per cent.
With regard to the position of tea and coffee in the country. Large scale imports are going on from Sri Lanka, with the result the price of tea is crashing everyday. We are facing a very serious situation. Under WTO Agreement, we can raise the duty up to 300 per cent. The duty on natural rubber sheet has been kept at 25 per cent on the plea that it is an industrial product. There is no industrial activity involved in producing natural rubber sheet. I most humbly request on behalf of ten lakh rubber farmers to raise the import duty on natural rubber sheet to 50 per cent. The ordinary farmer would be benefited by this measure. The duty on pepper has been raised to 70 per cent. But all these years our export has been declining. It is because of its import from Vietnam because the duty is down. Why can we not raise it to 200 per cent?
The exports of spieces have been stopped and instead we are having large scale imports. The Minister may please understand the difficulties of the farmers. There are nearly fifty lakh coconut farmers in this country. The duty on the crude palm oil had been cut by 10 per cent. No thought has been given to the actual difficulties being faced by farmers of this nation.
The proposal of a modern integrated food processing industry, increase in the capacity of cold storage and rural warehousing scheme, future and forward trading to cover all agricultural products are some of the welcome features. One time settlement scheme has been announced for the small and marginal farmers. The maximum limit that has been fixed is Rs.50,000. I request the hon. Finance Minister to raise the amount to a reasonable level.
For export of farm products, he has announced Agro Export Zones I am requesting the Finance Minister to give liberal assistance and grant to the food processing Ministry to set up plants in all the required States.
We have Rs. 60,000 crore of Non Performing Assets with our banks. Now, only Rs.12,860 crores have been recovered from the people. If we recover all this money from them, then the Budget deficit can be clearly abridged. Finance Minister is denying the LTC facilities to the Central Government employees. I humbly request the Finance Minister to consider all these points and take a favourable decision.
SHRI ABDUL RASHID SHAHEEN : We have our economy in a transitional phase and transitions are always painful. The hon. Finance Minsiter has tried a tight rope walking with careful considerations to give a Budget which has passed on less pain to the tax payers. But unfortunately, people living in far-flung areas of my constituency and upper areas of Uri tehsil are dependent on kerosene oil are hard-hit due to this price rise.
I would like to take up the problems of my State. The Indus Water Treaty which was implemented in 1961 emaciated our economy and crippled us for all times to come. Even though Jammu and Kashmir has such a big potential for hydel power generation, it is importing powr at a higher cost. Our present hydel power generation is also left with less capacity because of the siltation. Unfortunately because of this Treaty, we are not in a position to clear that silt. Keeping in view the harsh realities of this Indus Water Treaty, we should have been considered for faster development inputs in this Budget.
The hon. Finance Minister has mentioned in his Budget speech that implementation and governance of the schemes would reach the lower level of the people. The empowerment schemes are not reaching the lower levels of people in different areas. With one single blatant blow that terrorism has delivered the world economy started reeling under pressure. What about the tiny State which is the victim of terrorist violence for the last twelve years? An industrial package to Jammu and Kashmir on the pattern of North-Eastern States is at the final stage. Inland Container Depot at Jammu, under CIB Scheme is held up in various Departments and it has not been implemented. Our main stay of economy is horticulture. We have been asking for horticulture export programmes. Schemes have been made and programmes have been made, but they are held up for implementation. Our willow wood is famous all over the world for making the cricket bats. To our dismay, unfortunately, it goes in the raw-material form outside the country.
I would like to mention that the biggest raw-material and the most important infrastructure is peace for the country. Unless we look to the economic development of Jammu & Kashmir, we will not probably be able to get peace in that area where thousands of unemployed youths are starving and languishing without any hope.
SHRI PABAN SINGH GHATOWAR : The North-Eastern Region is burning with the insurgency problem. Also, this region is devastated by the floods every year. The hon. Finance Minister has allocated only Rs. 10 crore to provide Central assistance and only Rs.20 crore for the Brahmaputra Board.
More than one million people are working in the tea plantations of the North-Eastern Region. The plantation industry is going through a very difficult time. The Government has imposed Rs.2 excise duty. I would request you to abolish the excise duty and form a Committee to see that how best the Government can help the tea industry. North-Eastern Region is very rich in handicrafts and handloom products. North-Eastern Handicrafts and Handloom Development Corporation can greatly help the unemployed prople of the North-Eastern Region. Cracker Project and the Bogivil Bridge are two big projects pending for quite a long time. The non-implementation of these is becoming one of the burning problems for the North-Eastern people. The Government of India has formulated one Horticulture Mission for the development of horticulture in the North-Eastern Region. Finance Minister would kindly provide funds for this Mission.
Development of infrastructure in the field of tourism would create employment potential in the Region. In 1997, the Government of India has declared a tax holiday for those who wanted to establsh industry in the Region. No industry has been established in the Region spite of the tax holiday. I would request the hon. Finance Minister to make some new announcement of extending assistance to establish new industries in the region.
The people of the Region are very thankful to the hon. Finance Minister for his declaring 50 per cent excise duty relief to the refineries of the Region. 100 per cent excise duty relief was declared to the Accord Refinery by Shri Atal Bihari Vajpayee at the time of its inauguration. I would personally request you to restore 100 per cent relief otherwise it would send a wrong message to the people of the Region.
SHRI BISHNU PADA RAI : The people of Andaman -Nicobar island are. settled at different places. For the people of the North-East, 15% inland air travel tax has been propopsed in the Budget of this year. I request that this facility should also be extended to the people of Andaman - Nicobar. The prices of items under PDS are higher here. Shri Shanta Kumar has included the Andaman- Nicobar under the hill transport subsidy for PDS from 16th January. Now LPG facility is being provided to Andaman -Nicobar on the lines of other states of India. Tribal people live in the Nicobar districts. The price of a cylinder in this region is Rs. 384. The price of LPG cylinder in Andaman -Nicobar is still Rs. 20 higher. It was also decided on 5th March that inter-hill helicopter service should be provided in Andaman-Nicobar on the lines of Arunachal Pradesh and Lakshayadeep. There is a great importance of tourism in Andaman -Nicobar. I request that a package for development of tourism should be provided to this region. There are two main crops in Andamman -Nicobar. Those are arecanut and coconut. The prices of arecanut has gone down there. I request the Government of India to pay special attention towards it.
SHRI SHIVRAJ V. PATIL : At the outset, I would like to pay my homage to the memory of late Speaker, Shri G.M.C. Balayogi. Shri Balayogi was a gentleman, quite considerate and affectionate and conducted the proceedings of this House in the best possible manner.
In the past, the Parliament met for more than 150 days in a year. In recent times it is meeting for 100 or 110 days in a year. The Parliament should discuss plans and policies and weighty issues of public importance. The President’s Address should be discussed for enough number of days. The General Budget should be fully deliberated upon. The basic principles underlying and issues relating to the development of Railways and integrated transport system should receive enough attention. The Five-Year Plan and the Mid-Term Assessment of the Performance of the Plan are not discussed thoroughly any more. All these aspects are reflected in the poor performance of the Indian economy. This makes the Executive less accountable to the Legislature and the representatives of the people in the Legislature less effective and more helpless.
The Budget gives an idea as to the achievements in the economic fields in the year gone by. It gives the outline of the design made to bring about economic prosperity in the country in the ensuing year. The Economic Survey of India, 2001-2002 states "The Indian economy is passing through a difficult phase." The average annual growth rate during the Ninth Five-Year Plan is now estimated at 5.4 per cent which is lower than the Plan target of 6.5 per cent. The gross fiscal deficit, as a proportion to GDP, is now estimated at 5.5 per cent for 2000-2001, and 5.1 per cent for 2001-2002. The gross fiscal deficit of the Central Government at the end of the year is likely to exceed the budgeted targets.
Industrial slow down has been observed across all major sectors. To my mind, the causes are absence of vision, wrong policy, inept governance, absence of cooperation between the Union and the State Governments, absence of dialogue between the Union and the State Governments for coordinated efforts, absence of cooperation and correct balance between the public sector and the private sector, negligence to implement the Five Year Plan, non-understanding of the impact on the world economic situation, non-development of infrastructure, negligence to develop modern science and technology and use it, reliance on trade more than on industry and agriculture.
This year’s Budget is not visionary, not imaginative, is mechanical, negative in its content, uninspiring, a compilation of the proposals received from different Ministries, it is disjointed, not in an organic whole which can thrive and produce life-giving results. This is a very disappointing document.
As regards the economic reforms, the economic reforms should help to alleviate poverty, to increase production and productivity, to reduce unemployment, to modernise the units of production, to develop science and technology, to become able to compete with other countries, to use new areas of production, to protect citizens against economic uncertainties, and to encourage all sections in the society to do better. But what is the nature of reforms that the Government envisages? They are downsizing the Government, reducing the subsidy, allowing the market forces to play their role, reducing the governance to the minimum.
Economic growth has slowed down. The trend should be reversed. More investment opportunities should be provided. More investments should be done by the Government. More investments should be attracted. But there are no provisions in the Budget to achieve these objectives. The Budget should identify the areas in which surpluses are available and mop them up and transfer them to the areas where they can generate income and enhance production, productivity and employment. Rural India depends upon agriculture. For food and fodder, human beings and cattle rely upon farming. If farming sector does not develop, rural masses would become unemployed, penury-stricken and would suffer. To develop agriculture in India, inter alia, we need the following things, namely, irrigation facilities should be enhanced; allocation for irrigation is not sufficient; agricultural education should be imparted to farmers; there are no clear policies with regard to them; new varieties of seeds, fertilisers and pesticides should be produced and made available to the agriculturists; and the agricultural produce should fetch remunerative prices to the producers. Enough credit facilities should be given. I would like to understand if Rs.65,000 crore are enough for providing financial assistance to agriculture sector in our country, on which 70 per cent of the people depend.
I will make the last point and then take my seat. We are discussing fiscal deficit. What is the solution suggested by the Government to reduce the fiscal deficit? One is disinvestment and the second is to reduce the subsidies. The third thing that they are trying to do is to have some sort of legislation which can really help them to reduce the fiscal deficit.
But these are negative methods. If you really want to reduce the fiscal deficit, it is necessary to see that the production increases; it is necessary to see that the capacities which are established in the country are utilised to the maximum.
THE MINISTER OF FINANCE (SHRI YASHWANT SINHA) replying to the debate said: At the outset, I would like to pay homage to late Shri G.M.C. Balayogi. During the discussion on the budget for 2002-2003, the hon. Members went into the past events which I think is not correct to make comparisons. From 1980-81 to 1988-89, the average rate of growth was 5.7 per cent. Then from 1991-92 to 1995-96, another five years of the golden era of the Congress rule, the average rate of growth was 5.4 percent. In 1997-98 the growth rate had come down to 4.8 per cent. The industrial deceleration had already started. After that, during the first year of presentation of budget by me there was 6.6 per cent growth rate. The hon. Members rightly emphasised that the main feature of the budget is thrust on agricultural development. I formulated the budget in the most unfavourable circumstances and clearly the concerns of the people of my constituency, one of the most backward areas of the country, were foremost in my mind. On economic issues and economic policies, consensus could be evolved. There is definitely consensus on economic reforms and on the economic policies in this country. Shri Shivraj V. Patil and Shri Mani Shankar Aiyar can say that they do not agree with the disinvestment policy. When Congress was in power, they also went in for disinvestment. Both the Governments of Shri Devegowda and Shri Gujaral pursued the disinvestment policy. The Government is not against Public Sector. The Government have spent money for reviving 20 Public Sector companies.
The biggest problem before the Finance Minister, the Prime Minister and the Government is how to make both ends meet. In 1995-96, the interest burden on the Central Government was only Rs.50,000 crore. In 2002-2003 it is Rs.1,17,390 crore. 40 per cent of the total non plan expenditure is interest. Of the revenue receipts, 48 per cent goes into payment of interest. If I continue to make borrowings then I will become very popular. By giving concessions, the fiscal deficit will increase. I never suggested that disinvestment was the only method of removing or bridging this gap. Of our revenue receipts 48 per cent is accounted for by interest payments alone. The Defence accounts for 26 per cent; subsidies account for 16 per cent; together this account for 90 per cent of our revenues. In the golden era which Shri Mani Shankar Aiyar was referring to fiscal deficit was 9 per cent. In the House it was mentioned that the budget has been formulated under pressure of World Bank, IMF and WTO and MNCs. I state that no power can influence the policies of the country. In these four years, we have added 25 billion dollars to our foreign exchange reserves. The foreign exchange reserve has crossed 51 billion dollars and has come close to 52 billion dollars.
I was anguished at the time of announcing in the House that fiscal deficit will increase from 4.7 to 5.7. This year it will be 5.3 percent. I would like to state that we have not paid sufficient attention towards farmers, agriculture and rural sector. That is why I am of the view that all the restrictions imposed on the farmers should be lifted. We can get remunerative price for the agricultural produce. Shri Shanta Kumar informed that the country has earned Rs.4,250 crore by exporting wheat and rice. Now –a- days country is known as foodgrain exporter in the world. Regarding food for work programme, it was stated why foodgrains are being given to BPL and APL. Who started Antyodaya Scheme? The scheme was started by this Government. The Government itself sells wheat at Rs. 2 per kg. and rice at Rs.3 per kg. I would like to know when did the Congress sell at these rates. In the budget, announcement for an employment guarantee scheme named after Jai Prakash Narain was announced. Under this scheme self employment or wage employment will be ensured for every individual. The foodgrains lying in godowns had been procured by the Government and the FCI from the market. The Government is making available foodgrains to States for Food for Work, grainbank, rural employment scheme and Jai Prakash Narain Employment Guarantee Scheme.
The National Sample Survey Organisation had stated that the percentage of people living below the poverty line during the period 1993-99 has come down from 36 per cent to 26 per cent. In 2001, the growth rate was 4 per cent. There are three savings- domestic household, private corporate sector and public sector. Domestic household savings have gone up to 20.9 per cent, the highest ever recorded in this country. The private sector saving in 2000-2001 was 4.2 per cent. The overall saving rate was 23.4 per cent, which is an improvement over 23.2 percent of the previous year and 21.7 per cent of the year before that. The public sector saving rate has come down.
The expenditure on foodgrains has been consistently coming down. Expenditure on fruits and vegetables has gone up considerably. Expenditure on milk, eggs and fish has also gone up considerably. This shows a change in the consumption pattern of our people. This shows the improvement in the quality of life of our people. Import duty on Latex Rubber has been increased from 35 per cent to 70 per cent. Under the WTO agreement, we have to reduce the import duty on liquor. The Government is sensitive to the sufferings and is making efforts to streamline the overall framework. In the budget speech, the ceiling for deposit in relief fund per year was fixed at Rs. 2 lakh because as per my information, many persons deposit crores of rupees for availing tax benefits. Therefore, the Government has decided that for the retiring employees of Government, pubic sector, banks and private sector, the amount of terminal benefits and retirement benefits could be deposited in relief bond for which there is no ceiling.
All the Demands for Grants on Account (General) were voted in full.
All the Supplementary Demands for Grants (General) were voted in full.
All the Demands for Excess Grants (General) were voted in full.
Appropriation (Vote on Account) Bill, 2002 was passed.
Appropriation Bill, 2002 was passed.
Appropriation (No.2) Bill, 2002 was passed.
THE UTTAR PRADESH BUDGET –2002-2003
DEMANDS FOR GRANTS ON ACCOUNT (UTTAR PRADESH) 2002-2003
SUPPLEMENTARY DEMANDS FOR GRANTS
(UTTAR PRADESH)2001-2002
All the Demands for Grants on Account were voted in full.
All the Supplementary Demands for Grants on Account were voted in full.
The Uttar Pradesh Appropriation (Vote on Account) Bill, 2002 was passed.
The Uttar Pradesh Appropriation Bill, 2002 was passed.
G.C. MALHOTRA,
Secretary-General.
© 2002 BY LOK SABHA SECRETARIAT
NOTE : It is the verbatim Debates of the Lok Sabha and not the Synopsis that should be considered authoritative.