Subsidies to be cut in phased manner: FM

Indicating that softer interest regime would continue, the finance minister said that the government would take steps to boost savings. Government would also strengthen the equity cult, Singh told reporters after the Prime Minsiter’s economic advisory council meeting.

Describing the meeting with economists as instructive, Singh said “very good ideas were thrown up in improving the general state of the economy and pushing up the reforms.” Though the meeting was convened to discuss Electricity Bill and Petroleum Regulatory Board, Singh said issues relating to non-performing assets of banks, fiscal responsibility, minimum price mechanism and rural credit were also discussed.

Petroleum Minister Ram Naik and Power Minister Suresh Prabhu, who attended the meeting, said participants by and large welcomed the content of the Electricity Bill and the Petroleum Regulatory Board and made valuable suggestions.

Welcoming the initiatives of the NDA government, energy expert R. K. Pachuri said there is a need to take a hard look at the institution of independent regulatory system and ensure that it is adhered to right from the beginning. Economist Ashok Lahiri said indications of revival of the economy were already there in the last two quarters which needed to be consolidated.

Jagdish Shettigar of BJP’s economic cell said it was necessary to sustain the economic recovery trend and for this agriculture sector should be given due emphasis.