State sets up panel on eco reforms

Bhujbal told newsmen that he and Chief Minister Vilasrao Deshmukh would hold a meeting early Sunday to take a final decision on dropping of six ministers from the 61-member ministry and alloaction of porfolios.

Vilasrao Deshmukh told The Indian Express the committee, comprising non-government experts8217;, will advise the government on financial reforms, control of wasteful expenditure and financial discipline.

Deshmukh said soon after he took over the reins of the State, he asked top bureaucrats to prepare a white paper on the financial situation. 8220;I think the white paper is half-way through and will most probably be presented before the next Cabinet.8221;

Deshmukh said the main purpose of presenting the white paperwas to take the people into confidence before initiating steps to restore normalcy. 8220;As the head of the Democratic Front Government, I am duty-bound to explain to the people the economic mess created by the erstwhile Sena-BJP rule. We will have to present before them the real picture of the State8217;s economy,8221; he said.

Prima facie, Deshmukh said, there was need to drastically cut non-developmental expenditure, augment revenue by broadening the tax base and streamline tax laws. 8220;The Sena-BJP government had imposed a cut of 20 per cent in non-developmental expenditure. I think for more effective financial management, it is essential to impose a fresh cut on this. We will take a decision on additional cut after receipt of the report by the expert committee,8221; he added.

Last week, Deshmukh had a prolonged meeting with top bureaucrats who made a presentation on the state of the economy. By and large, the bureaucrats8217; contention was that the once-progressive State was passing through the worst-ever economiccrisis owing to an emphasis on populist schemes launched by the Shiv Sena-BJP Government.

8220;Our advice on some of the non-productive schemes was rejected outright for political reasons. We had specifically submitted that schemes like the zhunka bhakar one or providing free houses to 40 lakh slum-dwellers in the metropolis will be counter-productive. But once politicians take a decision, who is to bother about the State8217;s economy,8221; a senior official remarked.

The official said though Deshmukh has constantly been speaking on the state of the economy, his government will have to keep aside a huge amount to finance the Cabinet8217;s jumbo size.

Deshmukh in Delhi

MUMBAI: A day after bowing to NCP8217;s demand to prune the size of his jumbo ministry, Maharashtra Chief Minister Vilasrao Deshmukh this morning rushed to New Delhi to hold discussions on the issue with the Congress high command.