The Lok Sabha yesterday passed the Union budget for 2000-01, with the government refusing to bow to the combined pressure of allies and the opposition to roll back the cuts in food and fertiliser subsidies.
The government also sought consensus among all political parties to stem the growing fiscal profligacy of the Centre and states.
Replying to the discussion on the Finance Bill, finance minister Yashwant Sinha said the newly-constituted Expenditure Commission would consider better targeting of subsidies, which at present account for 14 per cent of gross domestic product.
"I have asked the commission to give a quick report on subsidies to better target it to food and fertilisers. This is the direction we propose to move in," he said in reply to queries by members cutting across party lines.
However, the opposition refused to be mollified and walked out, resulting in the Finance Bill being passed by a voice vote.
The direct and indirect tax amendments moved by the minister on Wednesday were incorporated. According to Sinha, the revenue impact of the giveaways would be minimal.
In his reply, Sinha singled out the Congress for its criticism of the government's efforts to cut subsidies. "I can understand Left members and some of the BJP allies pleading for a rollback but certainly not the Congress, which had raised PDS prices four times during the five-year rule of the late Rajiv Gandhi. Now the Congress wants to shed crocodile tears for the sake of the poor," he said
The minister dismissed the charge that economic growth had slipped during the National Democratic Alliance's tenure. According to him, the average growth rate was 6.5 per cent under the Congress from 1992-96, 6.3 per cent during the United Front's tenure in 1996-98 and 6.4 per cent under the NDA.
Similarly, the performance of agriculture under the three governments was not too different, Sinha said. "I don't see any reason for this government to be apologetic about its performance," he added.
The minister also blasted the stockmarket and said it was driven by rumours rather than fundamentals. "The stockmarket is only driven by rumours. I hope it will show some sanity and behave more responsibly," he said.
"It is silly behaviour. I can imagine the market responding to fundamentals of the country or results of companies. I can't imagine it responding only to rumours," he said, commenting on the volatility on the bourses.
With the industrial recovery in the last financial year, Sinha said the government was confident of achieving at least 7 per cent growth this year. "We are determined to achieve it if not exceed it," he said.
Sinha's Soundbites
* Consensus among political parties sought to stem growing fiscal proflgacy
* Expenditure Commission to study better targeting of subsidies
* Minimal revenue impact of fresh sops announced on Wednesday
* Economic growth rate maintained during the NDA's tenure
* No slippage in performance of agriculture
* Stockmarket should behave more responsibly
