Mr.
Chairman, Sir, I thank you for giving me this opportunity to speak on the
Supplementary Demands for Grants and Appropriation Bill moved by the hon.
Finance Minister. Even though the Grants now proposed do not cause any fiscal
deficit as mentioned in the introductory note, I would suggest that future
budgetary prescription should conform to the Fiscal Responsibility and Budget
Management Act. It should also be the prime duty of the Finance Minister to
contain fiscal deficit within the manageable limits. At the same time, Non-Plan
expenditure must be pruned. This is an absolute need. Among all the
departments, the Department of Agriculture has to be given utmost importance.
If we neglect agriculture, it will result in lesser production and
productivity. While the population growth stands at two per cent, growth in
production on farm front is only one140
per cent. This situation necessarily results in food shortage and alluring
poverty. The figure of persons dependent on agriculture has160 come down from 71 per cent to 62 per
cent, indicating lack of interest in farm operations. Hence as urged by the
experts, it would be better if the Government allocates more
amount to agriculture sector. I would also like to emphasise on the need
for construction of additional godowns for storage of procured food grains because
what is produced must be saved for consumption. At least in the next year’s
Budget, the Planning Commission should be more liberal in allocating sufficient
funds for construction of godowns. The Budget allocation and the grants now
made to education are not sufficient. The grant made under the head ‘Right to
Education’ is only Rs. 4,000 crore. Some States are urging the Central280 Government to grant more allocation and
implement the programme as a fully Centrally-funded programme. Taking into
account the importance of the programme and the States’ financial position, the
Centre should come forward to bear the expenditure up to maximum level320 for the Right to Education so that our
dream becomes a reality. Out lofty aim to make higher education accessible to
poor students and grant of education loan by banks is an important instrument.
Even after the Government gave an assurance that there will be a moratorium on
interest chargeable to educational loans, the banks are insisting on payment of
interest when the students approach for loan for the second year. The
bankers say that there are no clear instructions to them to postpone the
payment of interest. I think, there is some snag in it. Even though in the420 present grant under the head of
higher education, there is no mention about allocation for reimbursement of
interest to the banks, the Government has to bear the interest on the loan
payable to banks by way of reimbursement through the Reserve Bank of India. I
request the hon. Finance Minister to streamline the procedure and ensure speedy
reimbursement of interest480
amount to banks because they are all commercial banks and only after collecting
the interest, they would be able to move forward.
Mr. Chairman, Sir, I thank the hon.
Members for the observations which they have made. Due to paucity of time, some
of the hon. Members were not given the opportunity to speak. But we will take
note of those speeches also which have been given in writing. Our former
Finance Minister has highlighted some of the issues560 and expressed his concern. It is quite
natural for him to say that some of the expenditure proposals which I have
brought in the first Supplementary Demand could have been anticipated and
incorporated in the main Budget. There is no denial to the fact that some of
these could have been anticipated. Normally, the Finance Ministers do not come
out in the first Supplementary Demand, which is almost five per cent of the
total budgetary expenditure and a substantial part640 of the GDP in terms of percentage. This
time I wanted to make an experiment. I had this experience that when we give
the money required to the States, one complaint that constantly comes is that
much of the working season is lost. That is because we finalize the entire
budgetary exercise by middle of May when the Finance Bill700 is passed. After that, by the time
communications and other things are issued, the Monsoon Session starts. As a
result of that, if there is a shortfall or an anticipated shortfall, when the
actual is being given to them by the end of Winter Session through the second
batch of Supplementary Demands, much of the working season is lost. I wanted to
address this problem.
Hon. Members, I entirely agree with
you that I cannot bring GST without taking the States on board. Without Prince
of Denmark, I cannot stage Hamlet. They are the Prince of Denmark. They are the800 main actors. My opinion is that the
Central leadership should have discussions with them and find a viewpoint of
convergence. I have no intention of becoming the Super Finance Minister to
interfere with the State GST. They will have their840 rights as I shall have my right because
I am accountable to you. No tax can be levied without your approval; no expenditure
can be made without your approval. Similarly, they have accountability to their
States. That basic structure cannot be altered. So, what can we do for the
practical purpose? It would be desirable if I can completely abolish the
Central Sales Tax. But I cannot do it alone. That can be done collectively by
all the political parties which are running the State Governments and which
have representation in Parliament also. I was trying to drive at the point that
in the remaining three to four weeks, if I can place the Constitution
(Amendment) Bill for the consideration960
of this House, then it can be sent to the Standing Committee. After scrutiny by
the Standing Committee, in the980
Winter Session we can discuss the Bill and pass it. As for the rate of taxes
and other areas, I am engaged with the Empowered Committee of the State Finance
Ministers. That is a good institution you have established. I congratulate you
and I appreciate it. I am waiting for their Report and their comments on the
Draft Constitution Amendment, which I have given to them.
Mr. Chairman, I thank you for giving
me an opportunity to speak on the Supplementary Demands for Grants. The
Government has taken measures to enhance the fund allocation to various ministries
and I welcome the same. But at the same time, I would like to point out that the
textile sector, which is the biggest job provider after agriculture, ought to
have got more of fund allocation. Textile units that have facilities to compete1120 with the global competitors were
getting incentives from the Government but such grants are not being extended
now for want of funds. This greatly affects the entrepreneurs and the textile
industry. I would like to point out that the Government has failed to monitor
the growth of the textile sector. Cotton price rise, yarn price rise, power
cuts, fall in Dollar and Euro values have all greatly affected the textile
sector. Many of the textile units all over the country are meeting with huge
loss this year. Small and medium units are being closed. Lakhs of textile
workers dependent on these units are on the verge of losing their livelihood.
This is due to our inability to cope up with the competition from China,
Bangladesh and Pakistan. Yarn price in India has increased only because we have
permitted export of1260
cotton. It is a misconception that cotton growers benefit out of cotton
exports. In fact, the middlemen procure1280
all the cotton from the farmers at the time of yield and resort to hoarding.
When cotton is to be exported, farmers do not have cotton. So naturally, it is
the cotton traders who make huge profits. So, cotton exports are not profitable
to cotton growers. This has brought about stiff challenges to the textile
industry. Hence, I urge upon the Government to allocate more funds to
agriculture and extend a grant of at least Rs. 5,000 per acre to cotton farmers.
This will directly benefit the cotton growers and will pave way for a
significant growth in the textile sector. Cotton grown in our country must be
processed entirely here and yarn must be manufactured here itself. Cloth
production1400 and garments
manufacturing provide a cycle of opportunities to all the textile workers. It
is needless to remind the Government that this attempt at self-sufficiency will
help us to generate job opportunities and increase money flow, helping
Government to earn1440 foreign
exchange.
Hon.
Chairman, Sir, I would like to thank you for providing an opportunity to speak
on a very vital issue. We observe that there is a common prejudice against the
Scheduled Castes, the Scheduled Tribes and the Other Backward Classes and they
have to face injustice so frequently. I would like to draw the attention of
this House to a move of our Ministry of Human Resource Development. The
Ministry of Human Resource Development is known to make many innovative
experiments, and this Ministry has achieved many good results also. But
probably, because of some overenthusiasm or pro-activeness, this Ministry is
making a University Innovation Bill. The Ministry has prepared a draft Bill on
this and it has been circulated among the experts. I am getting pained to say
that in this draft Bill, the Ministry of Human Resource Development has not
mentioned about the reservation for the Scheduled Castes, the Scheduled Tribes
and the Other Backward Classes. 1600
