Press Briefing Monday, 28th February 2011

Shri Abhishek Singhvi addressed the media today.

Shri Abhishek Singhvi said the Congress party congratulates the balanced progressive, inclusive growth-oriented and dynamic budget presented today. Virtually every segment or sub-segment has been addressed at the micro, the macro and the medium levels. We make bold to say that this budget, which is very-very difficult to criticize unless the mind-set is, you must criticize for the sake of criticism. We have no doubt that the opposition will criticize because, as you know, ‘kuch to log kahein ge, logon ka kaam hai kehna’ but, in fact, if you examine the budget closely, the Government and the Congress-led UPA has kept its faith with the people starting first and foremost with the ‘aam-aadmi’, but not in any manner neglecting or forgetting the small and medium segments, the agricultural segment and the corporate segment. It is an exercise - an essay in holistic approach, an essay in inclusive approach without sensationalism, without aberration, without knee-jerk or short term immediate reactions. We are not surprised because nothing very different could be expected from the Congress-led UPA government, which I must remind you, has given you over 8 and 8.5% growth for over seven years barring that one year of a global recession. The lowest, I must repeat, in these seven years over 6.5% has been higher than the average of the highest in the preceding government’s period of 1998 to 2003. We have no doubt that this initiative will ensure effective allocation and servicing of all sectors and continue the era of voluntary compliance and growth.

The growth of GDP at 8.6% for the past year in real terms in which exports have grown at 30% or just under 30%, imports at 17.5% and we are, therefore, in a proud position to proclaim a 9% growth rate for the future at the worst assuming a 0.25% reduction on 9%. We have a remarkable year where fiscal deficit has been brought down below the estimates. We have a year where plan expenditure has increased, non-plan expenditure is increased but yet the financial deficit has come down from 5.5% to 5.1% - projected to actual, and we are now, therefore, confident of achieving 4.6% for the next year and 3.5% for the year following the next year. I think this is very-very important. This is being done with humongous social sector programmes. There is huge expenditure outflow but we have still managed by prudent house-keeping to do a fiscal deficit reduction.

The direct taxes code is on course and we will not waver from our April 1 next year deadline, as indeed, we are doing for the very-very significant Goods & Services Tax (GST) for which, this session of parliament is estimated or expected or desired to be the introductory session for a constitutional amendment, I say here that those who oppose this, would in a sense, unnecessarily expose themselves because this is something which is extremely good for the country giving an integrated holistic all-India pattern with a reduction in the rates by telescoping them into one integrated whole. There were views and apprehensions and therefore, very categorical assurance this time to move progressively towards a direct transfer of cash subsidy scheme. All three crucial areas of subsidy are addressed in this proposal namely kerosene, LPG and fertilizer.

Disinvestment, in the way defined by UPA not NDA, not selling the family silver, will remain on force. Great priority is given and we have shown and achieved it without going below 51% in crucial core sectors by disinvesting 5%-10% reducing ownership and yet retaining control. This is the marked difference between our policy and the previous government’s policy though; however, our policy is raising money and yet retaining control. There is, of course, a whole host of provision for a very important sector which we tend to forget which falls between the agriculture and the large services sector or the big service sector - the SME - the highest growth sector (small and medium enterprise). There is a refinancing programme and in particular NABARD will be given Rs. 3,000 crore additional support specifically for handloom weaver cooperative societies. This is the middle India in the corporate sense which is extremely important to fuel growth.

Housing has, among other things, a dwelling unit priority for 25 lakh dwelling units in terms of priority lending. There are many issues but let us concentrate on agriculture, which is one of the largest most comprehensive programmes in both policy and in allocation. On Agriculture, under the Rashtriya Krishi Vikas Yojanja, there is a 12% increase. Credit flow is raised from a very high Rs. 3.75 lakh crore to Rs. 4.75 lakh crore for the next proposed year. The capital base of NABARD is to be strengthened by phased infusion of additional capital. A major problem in our distribution system is being addressed by storage capacity enhancement and cold chain creations. We are concerned about the manufacturing sector which falls between the agricultural and services sector. The maximum growth elasticity is found in the services sector. There is a specific programme in this budget to increase the manufacturing sector from 16% to 25% over the next 9 to 10 years. This is a major programme and this focus will undoubtedly be a very important focus and the whole policy is being separately published in a near future on this issue.

Specific programmes on black-money issue have already been announced which are repeated in the budget – 5 fold specific strategy. This is the first government to do so. Those who shed crocodile tears did nothing about it earlier. Concrete steps are under way and, as I speak, at least 70% of the additional treaties or special agreements have been executed. Of course, much is to be done because this involves foreign countries. But nobody has done in 1-1/2 years not once single thing was done from 1998 to 2003 and those very people are shedding crocodile tears and trying to make a political point exposing their own hypocrisy.

Despite the paucity of funds, we have not been deterred by linking the MGNREGA with the consumer price index. This is an extremely important thing not the whole sale price index for agricultural labour. This is not a small thing. We already had the world’s largest social welfare scheme for the first time by this government. We are making it better and better.

In Bharat Nirman – there is one very important addition - a rural broad-band connectivity to 2,50,000 panchayats.

In Education – two important figures - which are simple and self-explanatory – an over-all increase of 24% and for Sarva Shiksha Abhiyan alone, it is 40% increase on core social sector which we call soft infrastructure but UPA believes to be the real infrastructure. There is putting up best foot forward. Another Rs. 500 to 750 crore for skilled development.

We have pension schemes - those for the BPL where the coverage is increased from 65 to 60 years making more people eligible for pension and the amount has also been increased from Rs. 200 per month to Rs. 500 per month.

Tax proposal – there is a uniform benefit from Rs. 1.60 lakhs to Rs. 1.80 lakh for individual tax payers. For senior citizens, the exemption limit is increased and a very special category of very senior citizens above 80 years of age is introduced.

The Corporate sector does not suffer from increase in excise and also in the rate of service tax and the surcharge is reduced by 2.5% on the taxation on the domestic companies.

On the question of reaction of the Congress party over taking action against Shri Raj Kumar Chauhan of Delhi Government despite Lokayukta’s report when compared to the congress party making hue and cry over the Lokyukta report in regard to Karnataka, Shri Singhvi said that there is no comparison between these two cases because there was a documented report in Karnataka. If there is any legal aspect in Shri Raj Kumar Chauhan’s case, action will be taken accordingly.

On the question of the reaction of the Congress party over the pressure being built by legal fraternity for the resignation of Justice Balakrishnan from the NHRC, Shri Singhvi said that it is a matter first and foremost between that relevant statutory commission and secondly between the government but most importantly between the statutory commission and the government in terms of the section of that statute which is a matter of law. Different people are giving their views and the Congress party certainly has no need to comment on those views.



Tom Vadakkan
Secretary, AICC