There’s life beyond BSE, Sinha tells CII

NEW DELHI, OCT 15: Finance Minister Yashwant Sinha today brought the industry's attention to the larger issues concerning the country in ...

NEW DELHI, OCT 15: Finance Minister Yashwant Sinha today brought the industry’s attention to the larger issues concerning the country in response to the Confederation of Indian Industry’s 13-point agenda submitted to the Prime Minister Atal Behari Vajpayee recently at a meet organised by the chamber here today.

Back from his constituency — Hazaribagh, Sinha was a different man today. He began his speech on the fact that even after 52 years of Independence, there is poverty and deprivation and went on to tell the corporate world that “there is life beyond the BSE, foreign institutional investors and capital adequacy norms.” The CII agenda has urged the Government to pass pending legislations, lower excise duty burden, restructure banks, divest its stake in PSUs besides several other issues.

“We must not merely be concerned with the stock market and neon lights… the economic agenda must go beyond the stock market, capital adequacy norms and FIIs,” Sinha told India Inc. “These terms make no sense tothe common man,” he added.

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Sinha said that it was a matter of shame that our farmers are asked to open a fixed deposit of up to Rs 10,000 for getting the Kisan credit cards. Moreover, bank officials harass the rural consumer when they go to get their cheques encashed. “The bank officials ask them to come after a few days,” he added.

Referring to CII’s economic agenda, Sinha said that he is aware of the challenges mentioned by the chamber. While thanking CII for extending cooperation in the event the Government has to levy an additional tax to curb the fiscal deficit, the FM did not rule the the possibility of a Kargil tax. Sinha said that the Government plans to deal with the fiscal deficit purely by cutting back the expenditure. “I am meeting all my financial advisors in that regard,” he said adding that an additional tax will be “absolutely the last recourse”.

Sinha also mentioned that he would not listen to voices in his coalition that want a roll back on the recent hike in the price ofdiesel. He mentioned that there has been a 20 per cent increase in excise duty realisation and the Government is creeping towards the target. Even the corporate tax collection, he added, should be close to the target by March 2000.

On disinvestment in PSUs, Sinha said that the Government is unlikely to meet its ambitious target of Rs 10,000 crore but it is looking at two to three big ticket items. Sinha said that he is determined not to increase the Government borrowings.