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Exercise 1 & 2 (English)
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Sir, natural calamities seemed to be now a very regular feature. This year there are several States which are seriously affected by drought. In some States it is the second successive year of drought and in some other States it is almost the third successive year. It means that large sums of money will have to be provided and I trust the priorities will be respected. We cannot go on putting up with a situation in which hundreds of thousands of villages today are without drinking water. Where from any drinking water is to be provided is not even known. The State Governments do not know what to do with it. It is not money alone that matters though large sums of money will have to be provided to ensure that drinking water is made available to villages. The Finance Minister knows that farmers must be given remunerative price. Mr. Finance Minister, I would request your attention to this particular point. You have said that by giving remunerative prices to farmers in respect of sugar you have seen the result, immediately and the manner in which the sugar cultivation improved, has increased and you have larger sugar production. That is exactly what we say. If you give remunerative price to farmers for what they produce not only will you be doing justice to them, but you also will ensure increased production. Productivity is one of your major, ought to be one of your major thrust bears. It is the one thing in which you are not being successful whether it is on the agricultural front or on the industrial front. I hope that this is something to which you will pay greater attention. When the Finance Minister started his Budgetary exercise in 2008, he endeavoured to do two things. One was to loosen the tight regulatory grip that he had on industry. Government decided to loosen it a little bit. The second thing that they had decided to do was to a streamline the fiscal and Budgetary process so as to enhance revenue collection and stabilise the business and trade. On both these fronts subsequent developments have been somewhat hesitant, but in some cases very contradictory also. So far as loosening the tight grip that Government has on the industry, I think Government has realised that by really loosening it in a judicious way, their has been tremendous improvement in the situation. Why that process has stopped, I don’t know. But I would recommend to the Finance Minister that loosening of the control in a selective way is a highly desirable and to continue it if you want to ensure that productivity increases. Productivity can only increase if there is less and less restrictions and fewer restrictions. Even more than that please note that what is not yet changed is the delay that takes place in decision making. The delay in decision making has a disastrous effect in many ways. I would say that unless the Finance Minister or rather the entire, Government makes a decisive and determined effort in this direction they will find that many of their good policy decisions may also not produce the desired results. So far as streamlining of the fiscal and budgetary process is concerned I have already said that the streamlining has been successful upto a point but it is the budgetary process where the Finance Minister desired to have an open policy that have something in regard to say. He has been in fact along a Budget every month in the sense that fiscal changes that are frequently being made. The way in which Excise duties are being changed and changed in a significant way give that impression. Some of the changes that are being made may have really disastrous effect on industry. We do not know the reasons as to why these changes are being made. Mr. Chairman, Sir, the streamlining process in regard to taxation policy is good. I understand that the Income-Tax. Bill is being revised. Considerable amount of work and time was devoted some time back also. There is a Choksi Committee report which I hope you will look into while examining this matter. So, I will not say much on that. There are two-three things which should be attended to. Look at the state of affairs in the construction industry. Why is the construction industry not flourishing as much as it should be at a time when there is tremendous housing shortage. It is entirely because of the way in which the Urban Ceiling Act is being operated. I think it is time that the Government seriously re-examine that Act with a view not to defeat the main objective of the Urban Ceiling Act but with a view ensuring that it does not become a throttle in the construction activity so as to become incapable of reducing the housing shortage which is very serious. Not only there is housing shortage in the urban areas even in rural areas there is tremendous shortage of housing which need very urgent attention.
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