New Delhi: The president, A.P.J. Abdul Kalam, yesterday
said that the Congress-led coalition would target an annual
growth rate of 7-8 per cent backed by a massive step-up
in investment in agriculture and infrastructure, even
as the economic reforms would continue but with a "human
face."
Addressing
a joint sitting of both houses of parliament, Kalam said
that the tax structure under the new government would
be "stable" and "citizen friendly"
though major tax reforms would be unveiled on the way
to expand the taxpayers'' base and to improve compliance.
In
order to maintain a "high degree of fiscal and financial
discipline," the president said that attempts would
be made to eliminate the Centre''s revenue deficit by 2009.
Kalam announced that a cess would be proposed on all central
taxes to finance the commitment to universalise access
to basic education.
Calling
for "selectivity and strategic focus" on public
sector units, the president said that privatisation would
be considered on a case-by-case basis and that full managerial
and commercial autonomy would be accorded to successful,
profit-making companies that operate in a competitive
environment. While chronic loss-making units would be
sold off or closed, the president said "private industry
would be inducted to turn around companies that have a
potential for revival."
Adding
that the capital market was reflection of the true fundamentals
of the economy, the President said that the Government
would remain "deeply committed" to its orderly
development. While foreign institutional investors and
foreign direct investment would be encouraged,
the government would at the same time protect the interests
of small investors by offering them new and safe avenues
for investment.
|