Fiscal bill aims at zero revenue deficit in 3 yrs

The Bill, which has several clauses, has been framed on the basis of the suggestions given in the report. The government would like to have a wide- ranging debate before the Bill is passed. It is likely to be referred to a select committee if the opposition demands so, Mahajan said.

According to sources, the Bill is likely to effect a 10 per cent statutory cut on government expenditure and borrowing annually from next year besides bringing down revenue deficit to zero level in three years. The Bill is likely to provide for setting up a high-power body headed by the finance minister to "control and monitor" steps to curb expenditure and borrowing by both central and state governments.

The eight-member body, to include experts in public administration, corporate sector and Finance, is likely to have overriding powers to monitor borrowings both from domestic and multilateral agencies, the sources said. The Bill is also likely to empower the government to set up an internal mechanism to tinker with some elements of revenue and expenditure to keep the fiscal deficit within the desired levels, sources added.

However, Mahajan refusted to reveal the details of the Bill stating that the major elements of the Bill will be provided at the time of its introduction.

The Cabinet has also decided to introduce Banking Companies (Legal Practitioners, Clients Accounts) Repeal Bill, 2000. The Banking Companies (legal Practitioners, Clients Accounts) Act, 1949 has lost its relevance and hence the decision to repeal this act, Mahajan added.

The government also approved the proposal to roll back the retirement age of employees of Hindustan Steel Works Construction Limited (HSCL) from 60 years to 58 years. According to Mahajan the decision would help the company save Rs 28 crore in six years. Following this, 157 employees will retire, effecting a savings of Rs 2 crore during 2000-2001.

The cabinet also approved signing of a treaty with Mongolia on mutual legal assistance in criminal matters in a bid to give boost to the fight against terrorism, drug trafficking and economic crimes. Besides terrorism and drug trafficking, the treaty would also provide necessary legal framework for seeking assistance from Mongolia on other major offences including those relating to taxation, duties and customs.

The cabinet also approved revision of rates of pension for non official chairman and members of Union Public Service Commission (UPSC). With effect from January 1, 1996, UPSC chairman would get a pension of Rs 14,630 per month while a member would receive Rs 11,150 per month.

The government also decided to bifurcate the National Scheduled Castes and Scheduled Tribes Finance and Development Corporation and set up two separate corporation for scheduled castes and scheduled tribes. While the National Scheduled Castes Financial and Development Corporation would be looked after by Social Justice Ministry, the National Scheduled Tribes Financial and Development Corporation would be within the ambit of the tribal affairs ministry.

The Cabinet also decided to set up a six-member ministerial committee under the chairmanship of the finance minister to deal with the emerging drought situation in parts of the country in the wake of low rainfall recorded in some states. The ministers in charge of agriculture, rural development, food and civil supplies, water resources and the deputy chairman of the planning Commission will also be in the Committee.

The cabinet approved a resolution to be moved by railway minister Mamata Banerjee in both houses of Parliament for acceptance of the recommendations of the first report of the Railway Conventions Committee. Major decisions
Fiscal Responsibility & Budget Management Bill approved

Banking Companies (legal practitioners, clients accounts) Act, 1949 repealed

Treaty singed with Mongolia on mutual assistance against crimeµPension of non-official chairman and members of UPSC hiked

Retirement age of Hindustan Steel Works Construction Ltd rolled back

National SC & ST Finance and Development Corporation bifurcated

Group of Ministers set up to deal with drought

Resolution to be moved by Railway Ministry for acceptance of recommendations of Railway Conventions Committee