House address: Prez hints Budget will push for more economic reforms

The indication comes a week before the presentation of the General Budget for 2011-12 in the Lok Sabha on February 28 by Finance Minister Pranab Mukherjee.

The top priority before the government continues to be combatting inflation,sustaining the growth momentum and encourage domestic and foreign direct investment (FDI),she said while outlining the task ahead.

“The Indian economy continues to be on a trajectory of high growth despite an adverse global environment… However,there is no room for complacency,” she said while making a case for wider push to economic reforms.

To achieve this twin objective,she said,”We have strived to make the domestic environment more conducive to investment,encouraging public as well as private investment,and domestic as well as foreign investment,particularly FDI.” Referring to the high inflation in the last one year,the President said “my government is deeply concerned over the adverse impact of inflation on the aam aadmi (common man) and the threat it poses to the growth momentum”.

While the food inflation had touched 18.32 per cent in December,2010,before moderating to over 11 per cent this month,the overall inflation still hovers above eight per cent as against the comfort level of 5-6 per cent.

The economic growth,however,is expected to be 8.6 per cent for the current fiscal,up from eight per cent a year ago.

To fight rising food prices,Patil said efforts must be made to increase agricultural productivity. “The long term solution lies in increasing productivity and production… the government stands committed to ensuring that farmers get remunerative prices for their produce,” she said.

However,to insulate the poor from the impact of high food prices,the government will soon bring Food Security Law to offer highly subsidised foodgrains to every family below the poverty line,Patil said.

“The states are being consulted (over Food Security Law) as the success of the programme hinges critically on their commitment to reforms in the Public Distribution System (PDS),” she added.

Pointing out that infrastructure development was critical to overall economic growth,she said private sector would need to play an active and bigger role in investments estimated to the tune of over Rs 40 lakh crore in the 12th Five Year Plan period (2012-2017).

Patil said the government “fully shares” the concern about the ill-effects of black money whether generated by evasion of taxes on income earned legitimately or through illegal activities.

“My government stands committed to tackling the menace frontally. It requires diligent,sustained effort by all law enforcement agencies,including those of state governments,” she said.

The President said the government has taken many steps to strengthen the legal framework,build new institutions and improve capacity to tackle this problem.

A multi-disciplinary study has been commissioned to go into its ramifications for national security and recommend a suitable framework to tackle it.

The government is also working closely with the international community,especially through the G-20,to expedite the process of identification and recovery of such money,she said.

Pointing out that India is now a member of the Financial Action Task Force in recognition of its anti-money laundering and anti-tax evasion measures,she said India has also gained membership of the Eurasian group and the Task Force on Financial Integrity and Economic Development.

“My government has taken steps to facilitate exchange of information for tax purposes with such countries and entities where Indian citizens have parked their money.

“The early results have been encouraging. These steps have led to additional collection of taxes of Rs 34,601 crore and detection of additional income of Rs 48,784 crore,” Patil said.

Referring to the internal security situation,the President said the country has “gone through a difficult year” as certain parts of the country suffered from “unacceptably high levels of violence”,especially areas affected by Left-wing extremism and Kashmir valley.

However,in the rest of the country,she said,except for two incidents of terror in Pune and Varanasi,the internal security scenario has been largely under control.

The increase in police forces,with emphasis on recruitment from areas affected by Left-wing extremism,has begun to show results,she said.

The government has recently approved an integrated action plan for 60 selected tribal and backward districts in nine states in order to address the felt needs of the local population,Patil said.

She said the situation in Jammu and Kashmir has improved with a number of pro-active measures taken by the central and state governments and interlocutors have been engaged fruitfully in their endeavours.

With regard to the North East,she said intensive engagement with various groups has largely reduced violence in those states.

On electoral reforms,the President said she was sure that all parties across the political spectrum supported the need for bringing about such reforms.

“I am happy to share with the honourable members that my government has constituted a committee on electoral reforms to fast-track the process,” she said,adding that the committee has held regional conferences which will culminate in a national conference in April this year.

“It is expected that this process of consultation would lead to an acceptable agenda of reforms,” she said.

About judiciary,Patil said the government attached high priority to improving the delivery of justice and reducing delays in the disposal of cases.

The details of the National Mission for Delivery of Justice and Legal Reforms are expected to be finalised soon,she said,adding this should result “re-engineering” of procedures,improving of human resources and leveraging of information technology.

“The Judicial Standards and Accountability Bill,already introduced in Parliament,is intended to enhance the accountability of the judiciary,thereby improving its image and efficiency,” she said.

Talking about the controversial Women’s Reservation Bill that provides for 33 per cent reservation to women in Lok Sabha and Assemblies,Patil sincerely hoped that it will be considered by the Lok Sabha at the earliest. The Bill has already been passed by the Rajya Sabha.

She said the government also proposes to introduce a Bill regarding protection of children from sexual offences.

Touching upon the foreign policy,the President said India seeks a peaceful resolution of issues with Pakistan through a “meaningful dialogue” so long as it does not allow its soil to be used for terrorist activities against India.

Maintaining that India has an abiding interest in peace,stability and development of countries in its extended neighbourhood,she referred to the “momentous events” in Egypt and said that “as a democracy ourselves,we welcome the dawn of democracy elsewhere.”