Arjun Singh differs with FM on 11th Plan funds
The Planning Commission has found unexpected support from HRD Minister Arjun Singh on the issue of greater funding for the social sector during the 11th Plan, even at the cost of fiscal discipline in sharp contrast to the approach favoured by Fina...
By PTI |
NEW DELHI: The Planning Commission has found unexpected support from HRD Minister Arjun Singh on the issue of greater funding for the social sector during the 11th Plan, even at the cost of fiscal discipline in sharp contrast to the approach favoured by Finance Minister P Chidambaram.
Advocating that the next plan "need not be constrained" by the Fiscal Responsibility and Budget Management Act, Arjun Singh wrote to the Commission that "indeed this Act has put artificial curbs on the capacity of the economy to invest more in poverty alleviation programmes as well as in the much needed public investments in agriculture, which is the primary cause of the current agrarian distress."
Singh's position is in sharp contrast with Chidambaram, who in his response to the queries on approach to the 11th Plan had written to Ahluwalia that "in the present milieu, adhering to the FRBM targets in respect of fiscal and revenue deficits is critical for macro-economic, financial, external sectors and budgetary sustainability.
"Fiscal discipline remains the major factor in determining the investment grade rating of the Indian economy by various international rating agencies," Chidambaram had said in the letter.
On the contrary, Arjun Singh said, "we need to give a hard look at the growth strategy itself which has exacerbated inequities in our system and the impressive growth rate has gone hand in hand with mounting agrarian distress, price rise and vast number of our people have remained totally untouched by the mesmerizing statistics that people so decisively rejected in the last elections."
Advocating that the next plan "need not be constrained" by the Fiscal Responsibility and Budget Management Act, Arjun Singh wrote to the Commission that "indeed this Act has put artificial curbs on the capacity of the economy to invest more in poverty alleviation programmes as well as in the much needed public investments in agriculture, which is the primary cause of the current agrarian distress."
Singh's position is in sharp contrast with Chidambaram, who in his response to the queries on approach to the 11th Plan had written to Ahluwalia that "in the present milieu, adhering to the FRBM targets in respect of fiscal and revenue deficits is critical for macro-economic, financial, external sectors and budgetary sustainability.
"Fiscal discipline remains the major factor in determining the investment grade rating of the Indian economy by various international rating agencies," Chidambaram had said in the letter.
On the contrary, Arjun Singh said, "we need to give a hard look at the growth strategy itself which has exacerbated inequities in our system and the impressive growth rate has gone hand in hand with mounting agrarian distress, price rise and vast number of our people have remained totally untouched by the mesmerizing statistics that people so decisively rejected in the last elections."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
