After Prime Manmohan Singh took a dynamic decision to go ahead with economic reform, Finance Minister P. Chidambaram put more zip into it at the meeting of the Planning Commission. He highlighted the government’s decision to press on with reform with renewed vigour. He wants to setting up of a National Investment Board (NIB) under the chairmanship of the Prime Minister to expedite clearance to proposals or projects with a financial outlay of at least Rs 1000 crore. The NIB will have the final say in such matters and will ensure that no ministry or department causes a slowdown in implementation. The government is known to have dragged its feet in the past and so the Board will do a vitally necessary job.
The Finance Minister also suggested two other areas where hurdles need to be removed. The outlays in power, coal, crude oil, gas and railways did not come up to the target in the eleventh plan period. The reason was that they were linked to financial and physical outcomes. This needs revision. Chidambaram also felt that the target set in the twelfth plan to reduce subsidies from 1.9% of the GDP in the budget estimates for 2012-13 to1.2% was overoptimistic. He urged the adoption of a system of cash transfers of subsidies in food, fertliser and petroleum to achieve the target. It will curtail administrative cost and prevent pilferage of food. The Finance Minister is on the right track but what stands in the way is the disunity in the coalition.
