NEW DELHI, DEC 13: Official sources said the gross budgetary support for the next year as well as the pace of fiscal reforms were also expected to figure during the discussions.When contacted Pant said, "this is a routine meeting of the two ministries. We will discuss a whole range of issues.""The calendar year is coming to an end and we will evaluate the overall situation as well as discuss remedial measures or future course of action," Pant said, adding the 10th Plan exercise would also figure in the discussions.Pant said reforms were particularly needed in the power sector where there were shortfalls in the capacity addition and poor inflow of investments."The public and the private sector investments will come to the sector only when there is an assured return on the cost of power. This is one of the reasons for the poor private sector investment in power," he said. Pant said that user charges, especially in the power and other public utility services, will have to move to a more realistic level in a phased manner."In the meantime, however, if issues like reducing transmission and distribution losses, improving metering as well as collection are tackled, performance of the sector can be improved," he said.The government has recently approved the Fiscal Responsibility Bill which aims at bringing the revenue deficit to zero level over a period of three years and effect fiscal discipline both at the Central and State levels including various ministries and departments.The Fiscal Responsibility Bill, to be tabled in the current session of the Parliament, provides for statutory powers to government to put auto-cap on borrowing and expenditure, has been necessitated because of growing and persistent fiscal imbalances raising the issue of fiscal sustainability and macro-economic stability.
