+ ʤɽɮ E ɴɱ ix Sɽi * ʺn ]DZ<Vɮ x] , V <xE Ij M + * ɽ xn , S{] * {bi Vɴɽ ɱ x V x =E l{x E l + E l E ɽ Bʶɪ E ɤɺ ɮ + g Jn EɮJx * Jn {ɮ Eix JS i + ʴn Eix +i * ɽ Jn EɮJx M + ɽ ɤɺ g ʮ {n i l, Ex ɽ +vxEEh E ʤx S{] Mɪ* =E {xɴǺ E Vɰi * =ɨ ʴɶY E E] `, ɮ {] E E] xɽ `, ɮEɮ E E] ` + = E] x +xֶƺ E E <E {xɴǺ x SʽB* <x nx {ɮ 300 Ec {ɪ E EҤ JS +ɪM* nx E = E] x ʮ{] n E <E {xɴǺ x SʽB + ɽ ɪɤɱ x] * ɦ nʹ]Eh =E +Si * xxҪ ʴii j V {Ux Sɽi E nxɪ < iɮ E nɴ E E =nɽh xɽ ʨɱM* xɨɰ{ ɮEɮ x SU , V = E] x +xֶƺ E l, =E M E + =E Sɱ Ex E Eɨ i ʤɽɮ E l E nɴ +? < iɮ i ɽ E M E x xɽ nM* M EM E Vɤ ʤɽɮ E Vn j + ɮ J-J ʴɦM +{E j , Ex <x ɦ i E ɴVn ʤɽɮ E l <ix ɮ nɴ , + iE E xɽ +* <E Vɴɤ n* Ei E BE V ʴɶY E n E ={ɪEi ɮEɮ E] l, =x nx E +xֶƺ E E xɽ + =E ɪɤɱ E E xɽ, n ʽi + ɴʽi =E {xɴǺ Ex E ʱB =x Vx E +x֨nx E E xɽ, +xֶƺ E E xɽ? xɨɰ{ E Eɨ ְ Mɪ, i ʺn E E ְ xɽ +, ɽ Vxx Sɽi ? ɮx ]DZ<Vɮ EɮJx xn , Ex =ɨ E< {S i =ɨ +ɮ{ xɽ Mi * < iɮ MJ{֮ E xn , ɮx E xn * V EɮJx xn , =xE Sɱ Ex E iɮ ɮEɮ E vx * nɴ E +ɮ{ <x {ɮ Mi * E xɽ + iE ʺn ]DZ<Vɮ EɮJx E <xx Sɱ Ex E Eɨ E* ʺn <xE Ij Mi + *

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ɦ{i ɽn : +{x 15 ʨx] ʱɪ , +{ Vɱn Ji EVB*

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Bihar the heart of India'

* < iɮ ʤɽɮ ʽxnֺix E EV * +Mɮ Ei E EV Ji VB i ɽ E {ɽɴx x Ei * < iɮ V {Uc B V , {Uc < +ɤn , {ɽ =E vɮ Vx SʽB* < ɨxv ɮ ɽ MbMɱ ɨڱ V E< ɨڱ x B * =ɨ ɽ E <]xɱ ʮV Eix BEj Ei , <E +vɮ xE =Ei V E ɽɪi E VBM* Ex ɽ E V {Uc + V ɽ + {Uc * =nɽh E ʱB +{ =cҺ E nJ , ʤɽɮ E nJ * Exp |EiE +{n Eh E x + , ɽ 100 Ec {B E * x < +x{ڮE +xnx E M nJ, =E gx E E< VF xɽ * Miɮ ɽ M Ei E <E gE 1000 Ec {B E VB* Vɤ E V |EiE +{n +i i ɽ ]ű +ʺɺ]ƺ E iɽi 500 Ec {B + ʶ E M E Vi , Ex Vɤ b 100 Ec {B E i <ix { E n V Ei * ʽxnֺix E ʴʦxx V |EiE +{nB +i i <ʱB +x֮v E < b E gE 1000 Ec {B iE E VB* Vɺɺ E V |EiE ʴ{n +B i =ɺ Vɤi x{] V E* ɮ ɽ ʽxnֺix =ǮE EɮJx, ɮx E n , {.b.+<.B. ʺn E n , +ɮ..BS.B. V] ʨɱ n , +<.b.{.B. Vɡ{֮ n , ʺn E ]DZ<Vɮ EɮJx n , Eɨ ʺ{xM ʨɱ n , Ex{֮-ɮ Mɮ ʨɱ n * ɤ ExpҪ E] * <xE E xɽ Sɱ E Vi, ɽ ɨZ xɽ +i* < iɮ ɮ ɽ MM Vɱ xEɺ E {x, MbE {ʮVx, E xn E Exɮ E >SEh {ʮVx ʨi * ɮ ɽ ɱ g + Jc +i i * Exp ɮEɮ E <ɨ ɽM Ex SʽB* ɮ ɱ ʡɡ E E< V +ɤn {Uc i =E ɽɮ n VB* +{x + iE E< ɽɮ xɽ n* ɮ V VxB ʨi , =xE +{ nJ + V ɮEɮ {ɮɨɶ EE {ڮ E* +Mɮ <ɨ V ɮEɮ E Eڮ i =E nJ + ɽ E +vEɮ <ɨ ɡ Ei i ɽ nJ* +{ ɽ +ɮ + ʶɪɮ +ɮ +{E xɨ +i l* <ʱB +{ ɽ E xEɽ E nJ + ʤɽɮ E n Ec Vxi E +ʽi xɽ , < {ɮ vx n*

ɹ]{i V E +ʦɦɹh Mv V E xɨ l* E< Eɨ E i nJ Vi E MɮҤ +n E ʱB EU xɽ* +Mɮ xɽ i ɨZ E ɽ Eɮ SV * ʴii j V Ex SɽM E +{ {ڮ nx `E ʴSɮ E + nJ E E +{x MɮҤ E ʱB EU S , EU E * +Mɮ MɮҤ +n E ʱB, MɮҤ Ij E ʱB EU xɽ S i xB E +{ Mv V ʴɨJ * Mv V V ʴɨJ M, =ɺ ʽxnֺix E Eh x ɱ xɽ , B ɮ ng i *

MvҴn |ɺME ,

Mv-ʽ + Vɪ|Eɶ,

vɮi MV + +Eɶ*

<ix EE +{x i ɨ{i Ei *

THE MINISTER OF FINANCE (SHRI YASHWANT SINHA): Madam, Chairperson, I must begin by thanking the hon. Members of this House not only for having participated in such a lively manner in this debate but also for having sat up late so that we could complete this business of Supplementary Demand. If I have only one regret, it is here that my friend of over three decades, Shri Mani Shankar Aiyar is not here to hear the reply.

Madam, Chairperson, those Members -- and I suppose all of us -- who are familiar with Parliamentary practice are aware of the fact that according to the traditions and according to the Parliamentary practice, Governments bring three Supplementary Demands - one in the Monsoon Session of Parliament, the other in the Winter Session, and the final one along with the Budget. This is the tradition. Unfortunately, as the Lok Sabha was dissolved, we could not bring the first batch of Supplementary Demands for this year in the Monsoon Session of Parliament, and therefore, this Supplementary Demand that we have brought is actually two Supplementary Demands and not one. I would like the hon. Members to please remember that the size of the Supplementary Demands and the net cash outgo of Rs.14323.79 crore is on account of the fact that it is two Supplementary Demands in one.

Now, other issue which has been raised in the House by many hon. Members is in regard to management of the finances of the Government of India in a manner that such Supplementary Demands do not become necessary. Naturally, a conclusion which has been drawn is that because we are poor in management, therefore, it has become necessary for us to bring a Supplementary Demand of this kind. Shri Mani Shankar Aiyar is not here but Shri Rupchand Pal is here. He questioned about a number of items which I will deal with very quickly explaining as to why we did not anticipate this at the time of framing the Budget.

I must say that the Members have been very kind to me and they have said that these Rs.3243 crore on account of Defence Services which is ascribed to the Kargil Operation could not have been anticipated. It is a matter of opinion whether it could have been. A point was raised whether we could not have anticipated the Defence pension which amounts to Rs.3676 crore and civil pension of another Rs.500 crore and over Rs.4000 crore going by way of pension and various other allowances for retired personnel. It could not have been anticipated as we do not prepare the estimates in the Finance Ministry. The estimates come to us from the various Ministries. In this particular case the estimates would come to us from the Ministry of Defence and we would examine them, of course. But they are the once who would know what exactly is their requirement under this Head for the whole year. They also could not anticipate it at all because of the Fifth Pay Commission. It could not be anticipated because the arrears on account of Fifth Pay Commission are trickling in. There are many issues in relation to Fifth Pay Commission which are still being settled.

Another Member, Shri M.O.H. Farook, who has now gone away, raised an issue of some pay scales relating to Union Territory Services. Many issues relating to the Pay Commission are still being settled and this pension payment is spread over various banks all over the country, treasuries all over the country, even a part of Nepal and the exact amount just cannot be calculated. This is a situation that we faced last year; this is a situation that we are facing this year. It is only when the demand materialises that it becomes possible for us to provide for it in the Budget. Therefore, I would like to plead that it was not on account of any effort or any desire on my part to conceal parts of the expenditure that I told the Ministry of Defence to suppress Rs.3600 crore of Defence pensions, arrears and other allowances

and to allow me to fiddle with the fiscal deficit. No. I could not have done it. I will plead with Members not to ascribe such lowly practices to me. Therefore, these two points are explained.

Extended Ways and Means of Advances to the States, Rs.3000 crore. This was an issue raised as to why we did not anticipate it. It was very loudly raised in this House. We are such dumb people that we could not anticipate this and therefore we did not provide for it and now I am coming surreptitiously through a supplementary demand and am trying to raise it. Madam Chairperson, I will take just two minutes of the valuable time of this House on this point. The National Development Council held a meeting on the 19th February 1998. In the National Development Council also the same point was made which has been made in this House, namely that the finances of the States have been literally rent asunder, that they have been completely devastated because of the impact of the Fifth Pay Commission. Rs.20,000 crore is the additional impact of the Fifth Pay Commission on the finances of the State Governments. So, Chief Minister after Chief Minister who spoke in the NDC meeting told the Prime Minister that they cannot face the situation and something ought to be done.

The Prime Minister, when he was winding up, instructed me as the Finance Minister of the Government of India that I should call a meeting, as quickly as possible, of Chief Ministers and Finance Ministers of various States and sit down with them to work out what exactly needed to be done in order to bail the States out. I could call that meeting on the 20th March 1999, 20 or 21 days after the Budget had been presented. In this meeting with the State Finance Ministers and some Chief Ministers who attended it we could reach certain conclusions. The conclusions were that the Government of India will constitute a high powered committee under the Chairmanship of the Secretary of the Planning Commission, the Secretary (Expenditure) of the Finance Ministry will be a member, and that we will discuss the issue with each State Government because there was no one solution. We knew, the States knew that there were structural problems relating to each State. Each State was in a different category. There was no one category. Therefore, we decided and each State Government accepted that while the Government of India should come forward to help the State Governments, the States must also take steps to help themselves.

Therefore, the idea came that we sit down and discuss a medium term structural adjustment plan with the State Governments. We took a number of steps to see that from April this year itself we started helping the States in a much more effective manner than we had done in previous years. These discussions went on and with many States we have reached an understanding and there are many States with which we are in dialogue and we will be reaching an understanding. We are putting our heads together with them. I am discussing it with the Chief Ministers to find out how the fiscal problem of the States can be taken care of. We have now evolved the Fiscal Facility Fund of Rs.3000 crore in order to be able to help the States get over their problem this year and in the medium term, that is, three to five years. That is why, this provision could not have been made in the Budget. It came after the Budget. This is the first opportunity where I could come to Parliament and take the approval of Parliament for this Fiscal Facility Fund. So, this could not have been anticipated. This is something that we are doing to help the State Governments.

20.00 hrs.

I would like to say this because Shri Mani Shankar Aiyar also made the point that because the NDA consists of so many allies, I am, therefore, under pressure to let go the fiscal discipline and help the States which are in alliance with us or the political parties which are governing some State or the other. I can assure the House, through you, Madam, that there is no politics whatsoever when I discussed these issues with the Chief Ministers of the States. We have here nine States with which we have entered into some kind of an understanding in regard to fiscal correction programmes. These States are Mizoram, Punjab, Himachal Pradesh, Rajasthan, Nagaland, Orissa, Manipur, Sikkim and Uttar Pradesh. Can anyone tell me that this is based on politics? Can anyone say that I am favouring the Government of Rajasthan or the Government of Orissa because they belong to an alliance partner of the NDA? No. We are looking at each State and we are trying to help that State and helping it means that we are sitting down with the State and working out a plan of action so that the State concerned could correct the fiscal situation.

I entirely agree that the fiscal situation has to be corrected. So, the sum of Rs.3000 crore could not have been anticipated. This is a facility that I am creating for the first time. I am taking the credit for the fact that at no point of time has any other Finance Minister created such a facility to help the State Governments. We have the ways and means facility. But this extended ways and means facility is a special facility to help the State Governments.

Then there is Rs.850 crore Central Plan Assistance etc. The total adds up to Rs.13,769 crore. About Motor Car Advance and the House Building Advance, Shrimati Geeta Mukherjee can say that we should not give it to the employees. But there is an obligation because these are provided for by rules and we cannot anticipate the whole expenditure. It all depends on how many people want it. So, there is Rs.200 crore provision for that. All these add up to Rs.13,769 crore out of a total of Rs.14,323 crore. The point that I am making is that the bulk of this expenditure could not have been anticipated when I was framing the Budget, when I was preparing the Expenditure Statement for 1999-2000. There is absolutely no trick, no fiddle in this. I have not done anything of which I could stand before this House and feel sorry about.