Expressing concern over the revenue deficit, Finance Minister Jaswant Singh said that the proposed debt restructuring scheme of Rs 1,20,000 crore and cash management for various ministries would improve the fiscal deficit pegged at 5.6 per cent for 2003-04.A Bill to bring in Constitutional amendments to enable States to share with Centre a portion of revenue from service tax and the Electricity Bill for furthering power reforms would be introduced in Parliament shortly, Singh said at CII’s post-Budget meeting. 1/6 may include WLL phones New Delhi: Finance Minister Jaswant Singh indicated that he could consider bringing WLL-based mobile phones under the 1X6 scheme for assessing income tax. On a query by a top executive of a telecom player on why WLL phones are not treated at par with other mobile phones, Singh said “I would certainly like to have a mobile phone for which I won’t come under the 1X6 scheme. We will look into the whole gamut of 1X6 scheme.” The government is re-examining the possibility to lower the minimum Rs 100 crore capital requirement for health insurance companies, Singh said.Admitting that the high fiscal deficit was a matter of concern, Singh said “what worries me is the revenue deficit.” Although the government has curtailed expenditure to the tune of Rs 6,000 crore and introduced ‘cash management’ system in major spending ministries, the minister said that the government can not continue to spend more than what it earns.The initiatives taken in infrastructure building would spur economic activities. Singh said. “The synergy created and the total economic effort realised if 3,000 km road project starts along with airports, ports and other infrastructure projects, will be huge,” the minister added.Justifying dividend tax proposal, the minister promised the industry that the government would look into whether there was any cascading effect of it. Government withdrew the dividend tax at the hand of recipients but levied a 12.5 per cent dividend distribution tax on corporates and mutual funds. One of the priority areas of the government was agriculture, Singh said, adding that “India has the largest irrigated arable land in the world. We have to be in the forefront of the world.”
