Kalam pledges tax reforms, 7-8% growth

NEW DELHI: The Congress-led Government at the Centre on Monday pledged itself to preserving, protecting and promoting secular values and enforcing the law without fear or favour to deal with all obscurantist and fundamentalist elements that seek to disturb social amity and peace.
"It is a matter of serious concern that forces of communalism have been able to vitiate the atmosphere in the country leading to outbreak of riots, the most gruesome face of which was witnessed recently in Gujarat. My Government is determined to combat such forces," said President A P J Abdul Kalam in his address to first session of both Houses of Parliament after the elections to the 14th Lok Sabha.
In the first major policy statement of the Government touching on various issues, Kalam said the first general elections of this millennium reflects the firm conviction of the people in the democratic process of change.
"The outcome of these elections is indicative of people''s yearning for inclusiveness--economic, social and cultural-- and their rejection of the forces of divisiveness and intolerance.
"The verdict is for establishing the rule of law and repairing our secular fabric. This Government is committed to providing the right ambience for fulfilling the aspirations implicit in the people''s mandate," he said.
The President said the Common Minimum Programme of the United Progressive Alliance, supported by the Left and other like-minded parties, reflects the commitment of all participants to implement this programme and make it the foundation for collective maximum performance.

The CMP, he said, was indicative of the broad thrust of the priorities of the Government. It would be the sincere effort of the Government to implement the programme during the next five years.
"However, the precise content and phasing of the programmes will depend on both the availability of resources and the pace of improvement of the absorptive capacity of various sectors. Our effort will be to move forward on the twin roads of efficiency and equity while maintaining a high degree of fiscal and financial discipline.
"My Government will need to devise imaginative measures to ensure that our macro-economic policies balance appropriately the concerns for rapid growth, stability and social equity," Kalam said.
The President''s 16-page address promised repeal of the dreaded Prevention of Terrorism Act (POTA) and enactment of a model law to deal with communal violence, encouraging states to adopt it.
On Ayodhya, it said the Government will await the verdict of the courts while encouraging negotiations between parties to the dispute for an amicable settlement, which, in turn, must receive legal sanction.
The Government is also committed to implementing the Protection of Places of Worship Act, 1992.

Kalam said steps would be taken to establish a Commission to look into issues relating to direct affiliation of minority professional institutions with Central universities.
Measures would also be taken to spread modern and technical education among minority communities. A National Commission will be established to make recommendations on how best to enhance the welfare of socially and economically backward sections among religious and linguistic minorities through reservation in education and employment
Hitting out at the previous Government''s education policy, the President said steps will be taken to remove "communalisation" of the school syllabus that has taken place in recent years.
Academic excellence and professional competence will be the sole criteria for all appointments to bodies such as the Indian Council for Historical Research, Indian Council for Social Science Research, University Grants Commission and National Council for Education, Research and Training.
Maintaining that the Government was aware of the "systematic erosion of autonomy" of institutions of repute in recent years, Kalam said the Government would ensure that all institutions of higher learning and professional education get back their autonomy that they enjoyed earlier.
"At the same time, Government will ensure that nobody is denied professional education because he or she is poor. Apart from increasing the supply of loan scholarships and refinance through banks, the Government will put in place institutional mechanisms to provide loans at affordable rates to those who cannot afford the costs of college and university education in science, engineering, medicine and management studies.

Kalam said Government is sensitive to the issue of affirmative action including reservations in the private sector and committed to faster socio-economic and educational development of the Scheduled Castes and the Scheduled Tribes.
Government will initiate a dialogue with political parties, industry and other bodies on how best the private sector can fulfil the aspirations of the SCs and STs.
Reservation quotas in Government, including those relating to promotions, will be fulfilled in a time-bound manner, he said adding to codify all policies on reservations, appropriate legislation will be enacted.
The President announced that Government will launch a comprehensive national programme for minor irrigation of lands owned by people belonging to SCs and STs, landless families will be endowed with land through implementation of land ceiling and redistribution legislation. "No reversal of ceilings legislation will be permitted," he said.
Observing that Government will respect the letter and spirit of Article 370 of the Constitution that accords a special status to Jammu and Kashmir, Kalam said dialogue with all groups and with different shades of opinion in the State will be pursued on a sustained basis.
This would be in consultation with the democratically elected state government, he said. The State will be given assistance to rebuild its infrastructure quickly.
"The Government is determined to tackle terrorism, militancy and insurgency in the northeast as a matter of "urgent national priority".

Unveiling the economic agenda of the new government, President A P J Abdul Kalam on Monday promised massive public investments in agriculture and industry, encouraging foreign direct investment, selective privatisation of PSUs and comprehensive tax reforms to achieve 7-8 per cent growth.
Addressing a joint sitting of both houses of Parliament, Kalam said government will deepen the financial markets, encourage Foreign Institutional Investors while protecting the interests of small investors and give new avenues for safe investment of their savings and strengthening Sebi.
"For boosting the growth rate of GDP, the rate of investment has to be pushed up by rejuvenating the capital markets. The government is deeply committed to the orderly development and functioning of capital markets that reflect the true fundamentals of the economy," he said.
Expressing government''s commitment to a strong and effective public sector, Kalam said privatisation would be considered on a case-by-case basis and chronically loss-making units will be either sold off or closed after providing legitimate dues and compensation to workers.
Stressing that tax rates would be stable and conducive to growth, compliance and investment, the President said government would undertake major reforms to expand the base of tax payers and make tax administration more citizen-friendly.
He said Value-Added Tax will be introduced in close cooperation and consultations with trade and industry.
Kalam emphasised government''s commitment to eliminating the revenue deficit by 2009 so as to release more resources for investment in social and physical infrastructure.

Subsidies will be targeted at the poor and needy, he said adding a detailed roadmap would be prepared for this purpose.
The government would take effective steps and strong measures to control the price hike of essential commodities, he said and assured that provisions to deal with speculators, hoarders and black-marketeers under the Essential Commodities Act would not be diluted in any way.
Assuring economic reforms with a human face, President A P J Abdul Kalam unveiled the new government''s agenda aimed at stepping up public investment, selective privatisation, far-reaching tax reforms, cess for education and changes in labour laws to attain 7-8 per cent growth.
Addressing a joint sitting of both houses of Parliament, Kalam said the Common Minimum Programme will be implemented during the next five years and agriculture, industry and services would be reformed to hasten social and economic development.
To root out corruption, black money will be tackled, he said adding major tax reforms with stable rates will significantly widen the tax base, increase compliance and make tax administration more friendly.
VAT will be implemented, revenue deficit wiped off by 2009 to release more resources for investments in social and physical infrastructure, he said.

Subsidies would be targeted, prices controlled and hoarders kept under check besides considering privatisation on a case-by-case basis. Loss-making PSUs would be sold or shut.
For boosting GDP growth and reviving the industry, the rate of investment will be pushed up by rejuvenating capital markets, deepening financial markets, encouraging FII and FDI and announcing a package for SSI sector soon, he said.
Kalam said India''s negotiations at WTO will fully protect the interests and livelihood of farmers, textiles industry will be geared to meet post-quota regime challenges and measures will be taken to boost exports.
Emphasising on government''s resolve to root out corruption, Kalam said black money generation will be effectively tackled and for this, procedures will be streamlined.
The process will be appropriately re-engineered to bring in transparency in governance.
Government will provide an atmosphere conducive to rapid growth of exports for which procedures will be simplified, tariffs appropriately harmonised and efforts would be made to strengthen infrastructure and reduce transaction costs.

"Textiles industry will be enabled to meet the new challenges imposed by the abolition of quotas under the WTO Agreement on Textiles and Clothing in January 2005. Given its special ecological importance world-wide and within the country, the jute industry will receive a fresh impetus," he said.
Noting that revival of industrial growth was of paramount importance, he said incentives for boosting private investments would be introduced, FDI continued to be encouraged and every support would be given to make Indian industry productive and competitive.
"Competition, both domestic and external, will be deepened across industry with professionally-run regulatory institutions in place to ensure that competition is free and fair," he said.
Government will establish a National Manufacturing and Competitiveness Council and soon provide a special package for SSI sector.
Referring to the ongoing World Trade Organisation talks, Kalam said government would negotiate in a manner to fully protect the livelihood of farmers which formed the backbone of the country.
"The Government will ensure proper implementation of minimum wage laws for farm labour. Effective measures will be taken to protect the interests of all agricultural workers. The process of land reforms will be speeded up and efforts to distribute the surplus productive land to landless will be redoubled," he said.
Recognising the need for changes in labour laws for rapid growth of manufacturing sector and expansion of employment opportunities, Kalam said such changes would, however, ensure workers and their families were protected.

With a view to providing guaranteed employment for 100 days in a year to at least one able-bodied person in each rural houshold, a National Employment Guarantee Act will be legislated soon, he said.
He said development of infrastructure will get a high priority and public-private partnership will be encouraged for expansion of physical infrastructure such as roads, ports, airports, power, railways and water supply and sanitation.
"Public investment in infrastructure will be enhanced and subsidies in such investments will be explicitly provided through the budget," he said.
Kalam emphasised the Common Minimum Programme will be implemented during the next five years and said the government would need to devise imaginative measures to ensure macro economic policies balance appropriately the concerns for rapid growth, stability and social equity.
Government would carry forward the process of social and economic development with reforms in industry, agriculture and services with a human face so that the benefits reach the urban poor where the vast majority lives.
Expressing concern over the debt burden on farmers, President A P J Abdul Kalam said the government will restore the health of rural credit system and step up public investment in agriculture.
The President said the government was committed to increasing the flow of agricultural credit, detailed farm insurance schemes, special programme on dryland farming, remunerative prices for farm produce, proper implementation of minimum wage laws for farm labour, land reforms and full realisation of the irrigation potential.

Addressing the joint sitting of both Houses of Parliament after elections to the 14th Lok Sabha, Kalam said the government would ensure a significant increase in agri-credit flow and that the coverage of small and marginal farmers by institutional lending expands substantially.
Public investment in agriculture will be stepped up significantly with focus on the backward and poor regions so as to substantially boost farmers'' income, he added.
"The entire rural credit system will be restored to health. The government is sensitive to the debt-burden of farmers and will take suitable steps in this regard."
Farm insurance schemes will be made more responsive to the needs of the farmers. The government will actively encourage investment in agro-processing industries to reduce wastage and facilitate value-addition benefiting the farmers.
Special programmes for dryland farming and intensive agricultural development of districts in arid and semi-arid regions will be introduced.
Kalam said watershed development programme lying dormant for the past few years will be revived.
"My government will ensure farmers nationwide receive fair and remunerative prices and the government agencies, entrusted with the responsibility for procurement and marketing, pay special attention to farmers in poor and backward states and districts".

Negotiations in the WTO will be such as to fully protect the interests and livelihood of farming community, which is the backbone of the country.
Government will ensure proper implementation of minimum wage laws for farm labour. Effective measures will be taken to protect the interest of all agricultural workers. Process of land reforms will be speeded up and efforts to distribute surplus productive land to the landless will be redoubled.
The UPA government will accelerate the development and use of the country''s irrigation potential. Starting with peninsular rivers, the environmental, ecological and techno-economic feasibility will be carefully examined.
All ongoing irrigation projects will be completed in a time-bound manner.
All funds for poverty alleviation and rural development will be directly credited to panchayat bodies to enable them to serve the people better. Appropriate guidelines will be prepared for effective utilisation of such funds.
Substantial portion of government''s investment will be channeled to the villages with special emphasis on improving basic infrastructure such as roads, power and drinking water in rural areas. "Let us not have a mindset that poorer quality rural infrastructure or poor products would suffice for rural consumption", he said.

India''s capital markets will be "rejuvenated" for accelerating investments to put the economy in 7-8 per cent growth orbit and, in the process, care will be taken to protect the interests of small investors, President A P J Abdul Kalam said unveiling the UPA government''s agenda.
"For boosting the growth rate of GDP, rate of investment has to be pushed up by rejuvenating capital markets," Kalam said in his address to the first session of both Houses of Parliament after the elections to the 14th Lok Sabha.
He said PSUs and nationalised banks will be encouraged to enter the capital markets.
Stressing that the United Progressive Alliance government was committed to "orderly" development and functioning of capital markets, he said market regulator Sebi will be strengthened.
"Interests of small investors will be protected and they will be given new avenues for safe investment of their savings."
Public sector companies and nationalised banks would be encouraged to enter the capital markets for raising resources and offering new investment avenues to retail investors, he said.

Kalam said financial markets would be deepened and foreign institutional investment continued to be encouraged.
"The railways have suffered immensely over the past few years with rail safety being a prime casualty," President A J P Abdul Kalam said in his address to a joining sitting of Parliament.
Giving the thrust areas of the Manmohan Singh Government, he said, "The government will move purposefully to modernise the vast railway network, keeping both the economic and social dimension of the railways in mind."
The new UPA government today put infrastructure development, through increased investment in roads, ports, airports and power, on top priority and said it would aim to achieve energy security for the country through acquisition of oil properties abroad.
"Development of infrastructure will get a high priority. Public-private partnerships will be encouraged for expansion of physical infrastructure such as roads, ports, airports, power, railways, water supply and sanitation," President A P J Abdul Kalam said addressing a joint session of Parliament.
Public investment in infrastructure will be enhanced and subsidies in such investments will be explicitly provided through the budget.

The government would put in place policies to enhance the country''s energy security with special emphasis on petroleum and natural gas, he said. "Overseas investments in the hydrocarbon industry will be actively encouraged," he said.
India, which is 70 per cent import-dependent to meet its oil requirement, has already acquired stake in oil and gas fields in nine nations till now.
A special programme will be launched to ensure that each household has full access to reliable power and public investment in the power sector will be stepped up substantially, he said.
Private sector participation in power generation and its distribution would be actively encouraged. "Power sector reforms will be continued in such a way that each section of the society gets quality power at affordable price."
Energy conservation will receive priority, he added.
The government said it would eliminate "all delays" that hamper the modernisation of the country''s armed forces.

Lauding the armed forces for always rising to the occasion when called upon to defend the country''s territorial integrity and assisting the civil authorities, the Government said it would ensure that funds marked for modernisation were utilised fully for the purpose which they were meant.
Outlining the new government''s policy towards armed forces, President A P J Abdul Kalam in his joint address to the two houses of Parliament said the welfare of the ex-servicemen would get priority and that former soldiers would be involved in crucial nation-building tasks.
President A P J Abdual Kalam on Monday promised full protection to workers and their families when labour laws are "changed" for enabling the manufacturing sector to grow rapidly, and a minimum 100 days of employment in a year to rural households.
"My government recognises that some changes are needed in labour laws so that the manufacturing sector grows rapidly with concomitant expansion in employment opportunities," Kalam said in his address.
He, however, said "such changes must ensure that workers and their families are fully protected."
He said the United Progressive Alliance government would pursue a dialogue with industry and trade unions on this issue before coming up with specific proposals.

"The government firmly believes that labour-management relations in our country must be marked by consultations, cooperation and consensus," he said, adding tripartite consultations with trade unions and industry on all proposals concerning them (workers) would be "actively" pursued.
"Painfully" aware of shrinking employment opportunities in the country, Kalam said the government would adopt policies for creating a conducive climate for investments in the organised sector.
Assuring increased credit for small scale industries and self-employed, he said the services sector would be given all support to realise its "true" employment potential.
"With a view to providing guaranteed employment for 100 days in a year to at least one able-bodied person in each rural household, a National Employment Guarantee Act will be legislated soon and implemented in a phased manner," he said.
Tamil will be declared a classical language, the government announced on Monday.
"The government will set up a committee to examine the question of declaring all languages included in the Eighth Schedule of the Constitution as official languages," President A P J Abdul Kalam told a joint sitting of Parliament here. Kalam said, "Tamil will be declared a classical language."

The government would await the court verdict on Ayodhya while encouraging negotiations between parties to the dispute to find an amicable solution, President A P J Abdul Kalam said.
In his address to the joint sitting of both Houses of Parliament, he, however, made it clear that a settlement through negotiations must receive legal sanction.
He said the government was also committed to implement the Protection of Places of Worship Act 1992.
Describing the riots in Gujarat as "the most gruesome", the government on Monday said it would adopt a model law to deal with communal violence and encourage states to implement it.
The government would also examine the question of providing constitutional status to the Minorities Commission and will strive for recognition and promotion of Urdu language under Articles 345 and 347 of the Constitution, President A J P Abdul Kalam said addressing a joint session of Parliament.
"It is a matter of serious concern that the forces of communalism have been able to vitiate the atmosphere in the country leading to outbreak of riots, the most gruesome face of which was witnessed recently in Gujarat," he said.

"My Government will take all possible measures to promote and maintain communal peace and harmony so that minorities feel completely secure. My Government will enact a model law to deal with communal violence and encourage states to adopt it," Kalam said outlining the thrust areas of the Manmohan Singh Government.

Observing that it would carefully examine techno-economic feasibility of the mega-project of linking of rivers, the government on Monday said it would take steps to amicably settle issues like the Cauvery water dispute keeping in view the interest of all parties."The government will accelerate the development and use of the country''s irrigation potential," President A P J Abdul while outlining the policies of the Congress-led coalition Government.
He said starting with peninsular rivers, the environmental, ecological and techno-economic feasibility of linking the rivers of the country will be carefully examined.
"Steps will be taken to ensure that long-pending inter-state disputes on rivers and water-sharing, like the Cauvery water dispute, are settled amicably keeping in view the interests of all parties to the dispute," he said adding that all ongoing projects will be completed in a time-bound manner.