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PM says fiscal deficit too high, sets govt agenda

Accords top priority to removing concerns of infra sector at meeting with new council of ministers

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Santosh Tiwari New Delhi
Last Updated : Nov 01 2012 | 11:55 AM IST

Prime Minister Manmohan Singh today outlined the government’s agenda at a meeting with the new-look council of ministers.

The major concerns and also the focus areas for the restructured team after Sunday’s large-scale reshuffle include tackling fiscal deficit which the Prime Minister pointed out was too high at present and solving the problems of the infrastructure sector by removing the constraints such as fuel supply arrangements, security and environmental clearances and financing difficulties.

He also urged the senior cabinet ministers to utilize energy and capabilities of their young colleagues in furthering these objectives.

“I am aware that we are working against the political calendar, but we should not lose sight of the fact that we are also involved in the task of nation-building. Our responsibilities and our commitment therefore need to transcend other considerations. I have no doubt that, in the time that is available to us, each one of you will bring your best efforts to complete the unfinished task before us and extend your support to all our colleagues across government in achieving the objectives we have set for ourselves,” said Singh.

Setting out the functional tone for the remaining part of the UPA-II tenure, he said it was important to recognize that, “we are now also experiencing the fallout of difficult economic conditions worldwide”.

The Prime minister said as a result, growth had decelerated, exports had fallen and fiscal deficits were expanding.
“Of particular concern is the fiscal deficit, which is too high and acts as a deterrent for domestic and foreign investment. These issues have a rippling effect across the economy and on the work of many departments that are represented here,” he added.

Finance minister P Chidambaram later made a presentation on the assessment of the economic tough situation with.
The Prime minister also said that one area that was at the top of the government’s agenda and required particular attention and effort at multiple levels across government was infrastructure.

“During the Twelfth Plan, we have set ourselves a target of realizing nearly 1 trillion dollars of investment in infrastructure sectors. To do so, we will have to overcome the constraints that currently deter or slow down this investment. Fuel supply arrangements, security and environmental clearances and financing difficulties are among these constraints. The growing gap between demand and supply of energy has emerged as a major constraint on our development,” he said.

Singh added that it was a major factor in widening the deficit on current account of the balance of payments as well as the fiscal deficit.

“It is imperative that we come to a common understanding on these issues and work out mechanisms  and remedial measures that will enable us to tackle these critical deficiences on a priority basise,” he said.

Giving a clear indication of his idea behind inducting young ministers and also elevating some of them, Singh said, “since a number of energetic and younger colleagues have now joined the Council of Ministers, I would also request my senior Cabinet colleagues to make full use of the capacities and capabilities of their Ministers of State by assigning them substantive tasks”.

Earlier, he also mentioned Mahatma Gandhi National Rural Employment Guarantee Scheme, setting up of the Unique Identification Authority of India to provide every resident with an “Aadhaar” number to access social support services, Rural Health Mission, Jawahar Lal Nehru Urban Renewal Mission, Skill Development Mission and legislation bringing into effect the Right to Information and the Right to Education, as the achievements of the UPA government since 2004 aimed at inclusive growth.

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First Published: Nov 01 2012 | 11:55 AM IST

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