Kargil has a manageable impact on economy — Sinha

AMBALA, JUNE 17: Union Finance Minister Yashwant Sinha today categorically said that the ongoing operations in the Kargil sector had a &q...

AMBALA, JUNE 17: Union Finance Minister Yashwant Sinha today categorically said that the ongoing operations in the Kargil sector had a "limited impact” on the fiscal position of the country, which could be managed at the government level.

"There is no need to panic at the moment. The government has the capability and resources to meet the unexpected expenditure," he said in an exclusive interview with The Indian Express here. "Right now, Pakistan should be worried about its crumbling economy and not India," said Sinha.

Setting all rumours’ about the consequential impact of Kargil on a common man’s life to rest, the Finance Minister said: "The prices are not going to increase. The management of supplies in the country is good and there is no shortage of food items. The countrymen should not fear on the price front as all other parameters affecting price rise are under control." Sinha was in town in connection with the inauguration of Regional Office of Oriental General Insurance Company and to attend a function for distribution of bank credit cards to Haryana farmers.

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He said India was not required to do any special planning to meet the "resultant adjustments" in the midst of Kargil problem as "the Budget was quite flexible". "Even today, I find no difficulty in repeating my statement of February 27 (at the presentation of Budget) that India is fully capable of meeting all its defence requirements during the current year."

He said no country can compromise on its defence needs and "India will also not do so". He, however, termed it hypothetical whether the Indian economy was prepared to meet the requirements of a war as was being talked about generally.

The Union Minister said India’s financial position was much stable as compared to the past few years. He said: "Everyone knows that India was able to sustain itself after the sanctions imposed on it in the wake of nuclear explosions last year. The determined India has now forced the same powers to rethink on their decision on sanctions." He added: "If we could sail through comfortably at that time, then why not today especially when Prime Minister Atal Behari Vajpayee has been able to gain international concern against Pakistan on Kargil issue and when we have the foreign exchange reserve of 33.50 billion dollars — the maximum since past many years."

The central minister refuted the allegations that Kargil problem was a consequence of Indian government’s complacency on Indo-Pak relations. He said: "If at all it is due to India’s complacency then it is 27-year-old, when the LoC was delineated in 1972. There has been no let-up in the precautions being taken by the Indian government all these years." He said he did not subscribe to the theory of failure of intelligence agencies in Kargil.

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Sinha said Pakistan had thought that it would be able to take advantage of the political developments in India. "But, it is a blunder that Pakistan has made in Kargil, given its almost bankrupt economy," he said.

The Union Finance Minister was bitter about a section of Indian politicians still picking up holes to get political mileage out of Kargil issue.Earlier, speaking at the inauguration of Regional office of Oriental General Insurance Company, Sinha favoured more independence to the banks and insurance companies. "The government interference in their affairs may only delay the crucial matters to be handled on a daily basis," he said. Uttar Pradesh Governor, Suraj Bhan, who was also present on the occasion, promised to bring Haryana on the air map of India soon.

The Finance minister also distributed credit cards of different banks to a number of Haryana farmers at a separate function, where he stressed on the need for strengthening the village economy for overall industrial development in the country.