Sinha hints at changes in budget proposals

The finance minister said the country would have to register a GDP growth of between 8-10 per cent during the next decade to achieve success in poverty alleviation and creating employment. The focus of the second genaration reforms should be on removal of poverty and unemployment, Sinha said.

He said the future policies must take care of the people’s basic requirements like water, food, shelter and medical facilities. "Initiatives need to be taken on these issues over long term if we have to achieve our objectives," he added.

Sinha conceeded that government finances were under pressure largely due to "dissavings" in the public sector and government expenditure. He said the previous governments had adopted policies for short term gains which had cost the exchequer dearly and said the NDA government was working towards a long-term policy to bring all round prosperity.

Earlier, in his opening remarks, CII outgoing president Rahul Bajaj said the industry was willing to forgo the demand of roll back in the proposal for taxation on exports and dividends if the government refrains from going back on its subsidy proposals in the budget 2000-01.