Public enterprises need more autonomy

SURAT, Feb 9: The Southern Gujarat Chamber of Commerce and Industry SGCCI has asked the government to make public enterprises more auto...

SURAT, Feb 9: The Southern Gujarat Chamber of Commerce and Industry SGCCI has asked the government to make public enterprises more autonomous and withdraw from production of all goods except those of strategic importance.

In its pre-budget memorandum submitted to Union Finance Ministry, the SGCCI said the government should to set its priorities right, for 8220;it had entered into fields where it had no business and neglected areas which were of utmost important for the country8221;.

It further suggested to the government to cut down on the scope of its activities and make drastic changes by closing down certain departments. However, it did not specify which department to be closed down.

In its 24-page memorandum, the SGCCI proposed certain measures which could be brought in the budget as part of fiscal measures to bring back the economy on rails. 8220;The need of the hour is to concentrate on revenue generation and reduce fiscal deficit,8221; it said.

According to the SGCCI, incomes could rise not only by concentrating on industrial or agricultural activities but also on other non-traditional areas which had not received due recognition such as tourism. Despite vast potentials of earning foreign exchange, the tourism industry had not been fully exploited, it claimed, adding that while China got 10 billion out of 26 million tourist, India earned 3 billion from 2.3 million touristsBureaucrats should be made more people-oriented and motivated to come up with schemes of cost reduction on long-term basis, the chamber said adding that the government should seek co-operation from all political parties to push tax reforms.

On the social sector, the SGCCI proposed that the stress should not be merely on opening new hospitals but also on prevention of disease by providing better health education and living conditions. Innovative scheme of education should be started to eradicate illiteracy.

Other suggestions included: ban on hazardous industries, allocation of more funds for holding Lok Adalats to solve the problems, privatisation of ports and development of an airport in Surat.