RBI to get full autonomy: Sinha

The government could consider amendments to the Reserve Bank of India Act if hindrances come up in the central bank8217;s functioning, he said. quot;RBI is free to operate within its charter. If it is not enough, we are willing to change the RBI Act to give it more autonomy,quot; Sinha said.

The minister was also in favour of granting full functional autonomy to the financial sector, but added the caveat that this would not come without a central regulatory authority. quot;We have measures in mind on this issue and we will consider these in due course,quot; he said.

The government will introducemeasures to promote savings. quot;For this better tax compliance is required,quot; he said. Sinha indicated that the budget for the current fiscal will have tough measures to ensure greater tax compliance.

quot;The dream budget has reduced tax rates, now the the time for paying up has come. Tough measures will be enforced to improve compliance,quot; he said. The government8217;s aim now is not to increase taxes but to improve compliance, he said.

quot;A voluntary disclosure scheme was announced last year. Now the time has come for everyone to pay taxes according to their incomes or company turnovers,quot; the minister said. Growth can only be ensured if resource generation is improved by better compliance, he said.

The government will try to ensure better tax compliance without unleashing inspector raj, he said. He called for a change in attitude of tax collectors. quot;It will be my endeavour that the tax administrators change their mindset. We are prepared to give an assurance that there will be no harassment of any kind,quot; headded.

Sinha called for boosting exports stating that it would ensure greater capital flow into the country and help in putting the country back on the growth trajectory.

quot;If this country has to move forward, we need a current account surplus and that can happen only with export growth. We talk about high technology but most of our exports will have to come from low technology areas which will also generate employment,quot; he said.

The minister called for greater linkages between the government and the private sector for creating centres of excellence for the country8217;s scientists and technologists.

Regarding swadeshi, the minister said that it does not mean protecting the domestic industry at the expense of foreign investors. quot;Domestic competition is inevitable so we must be able prepare ourselves to meet these challenges. And swadeshi means just that. Encouraging domestic industry to meet global competition,quot; he said. Projecting an improved economic outlook, he said implementation of thepackage announced by the prime minister would lead to better performance of the economy.

quot;The next four to six weeks are going to be extremely crucial. We will have to translate into action whatever the prime minister has announced,quot; the finance minister added.