Finance Minister Jaswant Singh on Wednesday hinted that the next key reforms announced by the government would be easing of foreign investment regime, which could include easing of FDI norms in telecom and open sky policy in the civil aviation sector. Singh also said that the country’s economic growth would be more than 8.4 per cent in the third and fourth quarter and fiscal deficit would be within target of 5.6 per cent of GDP despite Rs 12,000 crore customs and excise sops last week.‘‘Though a Finance Minister cannot speculate about the growth figures,’’ he said the macro conditions which enabled the country to achieve 8.4 per cent growth in the second quarter of this fiscal would in fact improve in the next two quarters.‘‘If inputs to GDP is improving, the output (economic growth) has to improve. I am more than sure that the growth in the next two quarters would be better than second quarter ,’’ Singh said at the Oil conference here.Asked if there would be any sops in direct taxes in the near future, Singh said: ‘‘why be impatient. Just wait for a few days. Key reforms now is to further open up FDI and FII regime.’’To a question on when the vote-on-account would take place, Singh said it was for the Parliamentary Affairs Minister to decide. Singh parried questions whether Foreign Investment Promotion Board (FIPB) was being dismantled. ‘‘I have also read the newspaper reports,’’ he said.On whether there would be an Economic Survey this year in the event of government not going in for a full Budget, Singh said after the fiscal responsibility and Budget Management Act, the government was mandated to present to Parliament the performance of the economy every quarter.‘‘Vote-on-account is part of the interim budget, which is total rendering of full year’s expenditure and gross budgetary support to States,’’ he said adding interim budget too involved lot of work.Singh said the proposed disinvestment of 10 per cent of equity in oil PSUs Gail and ONGC in the domestic market would enable the government to be closer to the disinvestment target of Rs 13,200 crore this fiscal. He also said it was upto the disinvestment ministry and merchant bankers to decide on the price.Voicing concerns over surging inflation rate now about 5.5 per cent, Singh said the government continued to ‘‘closely monitor the price behaviour, leaving no room for complacency on the inflation front. I think we will enter the fiscal year at 4-4.5 per cent.’’There has also been an improvement in central government finances. The gross fiscal deficit of the Central government will show an improvement, though ‘‘I do recognise the need for continuing to further the fiscal consolidation of our economy,’’ he said. On management of fiscal deficit, Singh said ‘‘I would like to assure you that when I present my reports in Parliament, you will be surprised.’’‘‘Lesser is the interface between the taxpayers and tax officials, lower is the irritation. At present the perception of the people about tax system is that of a scorpion — you go near it, it will sting you. We want to remove this perception,’’ Singh said.
