Budget fails to meet goals -- Chidambaram

Budget fails to meet goals -- Chidambaram
ENS ECONOMIC BUREAU

MUMBAI, MAR 3: Former Finance Minister P Chidambaram on Saturday said the Union Budget has failed to address the core issues of inflation, employment and domestic savings.

Addressing a budget analysis meeting organised by the South Indian Education Society (SIES) here today, Chidambaram said the government should switch back to higher interest rate regime for small savings if it fails to contain inflation. "Two-three per cent mark up above the inflation rate would be an ideal bench mark for small savings and other similar instruments," he said.

Lamenting the unspent plan expenditure of over Rs 8,000 crore by several central ministries, he said this did not augur well for the country. ``The Prime Minister should punish the concerned ministers for non-performance and this will automatically improve accountability of the other ministries," he advised.

Calling the budget as `not courageous', Chidambaram criticised the FM for not spending his whole plan outlay. He also debunked the Reserve Bank of India's new found theory of `core Inflation', and said it should be abolished. ``Unless inflation is brough under control, no real growth will take place, and issues like reduction in interest on small savings, provident fund would assume political colour,'' he explanied.

On divestment, he said sale proceeds are being tied to planned expenditure, which is not correct. ``Instead the proceeds should be spent on social expenditure,'' he advised. Answering a question on tourism, he said India gets only 2 million tourists a year, whereas, a small country like Spain attracts 40 million. ``India should invest more time and energy in bringing more tourists into the country which will generate foreign exchange for the country,'' he added.

He said that the Budget is not assesed when it is laid on the floor of Parliament on the last day of the fiscal year when actual performances are in place. ``Since the current budget involves several legislations to give effect to, particularly with reference to labour and banking, everyone should give it a fair try and not confined to petty political gains. ``After all, the battle against poverty cannot be lost in the fields of political one upmanship,'' he said.