Search the Internet          Tips  Sites: Finance, Investment

Rollback of some Budget proposals likely: BJP

Sandesh Prabhudesai in Goa

The Bharatiya Janata Party on Friday told the central government to rollback some of the proposals contained in Finance Minister Yashwant Sinha's Budget 2002-03.

Admitting that the Budget has contributed to the poll reversals the party faced in the recent elections BJP president Jana Krishnamurthy suggested that the government should 'tighten its belt' to bring the economy out of mess.

While speaking at the BJP national executive meet in Goa, on Friday, the party president said time has come for an in-depth analysis of the issue.

"A healthy balance could be struck between economic rationality behind (economic) reforms and the capacity of the party for political management", he said.

He said that though lower interest rate regime was necessary for economic development, the government should introduce adequate safety net measures before initiating any step towards this.

BJP leaders have been voicing concern over withdrawal of some tax saving concessions, which they feel have hit hard the middle class, a strong vote bank of the party, and the reduction of the interest rate of the small savings.

Krishnamurthy said that in a country like India where there was no adequate social safety net, retired persons often had to depend on their hard-earned savings during their old age.

"It is purely a humanitarian issue. Where should they go for their livelihood?" he asked.

Stating that people's co-operation was crucial for implementation of economic reforms, Krishnamurthy said: "While they have to tighten their belt, whether it is surcharge on income tax, cut in interest rates on small savings or hike in prices of petroleum products, people expect that their sacrifice would go for noble national cause," he said.

Moreover, he said, it was quite essential to generate resources to meet social sector developments like primary education, healthcare and drinking water.

"The party is deeply committed to social sector development since we cannot afford to keep a section of the society out of developmental benefits for long.

"Corrections of fiscal imbalances and the need to meet social and physical infrastructure developments necessitate some amount of sacrifice by the comparatively better-off sections," he added.

Before moving into second generation reforms, Krishnamurthy suggested that the government should appoint an experts' committee to thoroughly assess the impact of first generation reforms, within three to six months.

Drawing attention to the bulging food stock of around 75 million tonnes, the BJP chief asked for further flexibility in public distribution system, especially for those living below the poverty line, by introducing food coupons or daily-base purchase system.

To implement the new Textile Policy more effectively, and remove the many difficulties that the sector faces, Krishnamurthy said coordinated efforts by the textile, finance and small scale industry ministries were required to restore its health.

(With additional inputs from PTI)

ALSO READ:
The Rediff Budget Special
Money
Business News