NEW DELHI, MARCH 28: With existing measures having failed to bring down burgeoning fiscal deficit, the Government is planning to enact a law to cap limits of borrowings that it can go for, from both external and internal sources.The Law Ministry is busy finalising contours of the Fiscal Responsibility Bill to remove at least part of the Rs 5000 burden (country's liabilities equitably divided among the people), each person faces.``An institutional mechanism will be established to have fiscal management by ensuring proper ratio between liquidity and limits of borrowings'', said a senior officer in the Government.The Government wishes to bring down public expenses made due to ad hoc and political reasons. This is the only way to curb fiscal deficit, the official said.Finance Minister Yashwant Sinha in his recent budget speech has already indicated his plan to downsize the bureaucracy by introducing attractive voluntary retirement scheme (VRS).with successful implementation of a scheme prescribing a two per cent reduction of its employees strength, during Narasimha Rao's tenure had already resulted in at least eight lakh vacancies in various Government departments and ministries.The Government has decided not to fill up posts falling vacant, except in most essential services like armed forces and para-military forces.On the other hand, there were plans to corporatise some major departments like railways and telecommunication to cut down its flab. With fast expansion of e-mail in metros, the Government was planning to lease out franchise of postal services to private players, maintaining postal services only in rural areas.``The Government wants to create an atmosphere in which it is left with building and maintaining infrastructure while entrusting the job of providing service to private sector'', a senior Minister claimed, ``The Government will maintain services only in areas of public interest like basic health''.
