Jalan favours rethink on disinvestment

Rajya Sabha member and former Reserve Bank of India Governor Bimal Jalan yesterday said it was possible for political parties to take a "different view" on the disinvestment process. He added that parties should have the capability to push ahead with their plans.

"It is possible to take a different view both in terms of the human-face and content. You (new government) must have the capacity to do what you want to," Jalan said at a Federation of Indian Chambers of Commerce and Industry (Ficci) conference.

Although there was a difference in view between the National Democratic Alliance and the Congress and its allies, he said they were not that vital.

Jalan did not oppose populist measures like free power to farmers promised by a newly-elected party in a state but said they should not come at the cost of taxpayers' money.

In this context, he stressed "fiscal empowerment" and the need to reduce fiscal deficit both at the Centre and in states to ensure higher growth.

"I don't think there is any difference in the view that we want high growth, lower poverty, low inflation, financial stability and a strong market... Unless you correct the fiscal problem, you cannot achieve what you want," he said.

Jalan also laid stress on a better public delivery system, legal reforms, corporate governance and the need to bring down corruption.

Prescribing a long-term fiscal policy, Jalan said tax rates should come down, procedures should be simplified and tax net widened.