7/27/2019 Indian Finance Minister's 10 Point Program

1/2

FINANCE MINISTERS 10 POINT PROGRAMME

Replying to a debate in Parliament about the state of the Indian economy,

Finance Minister P. Chidambaram today listed out 10 points which he said

the goernment should ta!e in order to get the economy bac! on trac!."hile he as!ed the goernment to speed up inestment, encourage

manufacturing and boost e#ports, he also lamented that Parliament had to

run to the $upreme Court or the $upreme Court%appointed benches.

1.Controlling fiscal deficit& 'he first tas! at hand is to control fiscal deficit

% at (.) per cent, the Finance Minister said. *e said that while the fiscal

deficit was not in control when he too! oer and was threatening to go

beyond + per cent een though the udget said -.1 per cent, he has

managed to !eep it in control. *e added that the best way to control the

deficit was to cut down on e#penditure.

. Controlling c!rrent acco!nt deficit& Financing the current account

deficit has become a maor challenge, Mr. Chidambaram said. *e said the

goernment will contain the deficit it at /0 billion or below, and will safely

finance it.

". Adding to t#e reser$es& "hile the reseres are adeuate, it is

important to add to it, he said. "e must use F2Is, 3RI inestments,

ban!ing capital and 4Cs, the minister added.

%.Re$i$ing t#e in$est&ent c'cle& It is important to unbloc! the stalled

proects, and ensure uic!er disbursal of funds where proects hae been

approed. 'he Cabinet Committee on Inestment has so far cleared 15

proects with an inestment of . 1,65,)0+ crore.

(.)!ic*en t#e ca+e, +rogra&&e of PS-s& Public sector enterprises are

sitting on large uantities of cash and it is important to uic!en the capital

e#penditure programme, said Mr. Chidambaram. 4en the performance

rating of the top management will be lin!ed to it, he added.

. Ca+italise t#e +!/lic sector /an*s& "hile the public sector ban!s are

well capitali7ed and are well aboe the asel III norms, it is important to

7/27/2019 Indian Finance Minister's 10 Point Program

2/2

pump in more capital in them to boost inestor confidence, Mr.

Chidambaram said. *e said . 1(,000 crore will be inested in the P$8

ban!s, adding that eery rupee that is gained out of the disinestment in

Coal India 9td will be used to capitali7e public sector ban!s.

. Rea+ t#e /enefit of t#e good &onsoon& 3othing must be done that

will come in the way of ma#imi7ing agricultural production, and therefore,

the gas allocation to fertili7er sector will be maintained and not a single unit

of gas will be reduced, the minister said. 'his will ensure that the ma#imum

amount of fertili7er is proided to farmers all through the year. an!s, too,

hae been instructed to proide as much loan as the farmers reuire, he

added.

.Enco!rage &an!fact!ring& Mr. Chidambaram said manufacturing hasbeen allowed to languish in the country, and gien India:s si7e it was

important that the sector is reied. *e said the imposition of customs duty

on high%end flat screen ';s was not capital control, but a way of

encouraging manufacturing in the country. Manufacturing must be

encouraged in power, steel, metal, automobiles, electronic hardware and

te#tiles, he said, adding that India was currently importing items that could

easily be manufactured in the country.

2.Enco!rage e,+orts& 8nless e#ports are increased, the current account

deficit cannot be reduced. 4#ports hae risen 11. per cent in