The Hindu Business Line : Govt working towards zero-based Budget: Montek

THE Deputy Chairman of Planning Commission, Mr Montek Singh Ahluwalia, on Sunday said that an approach document for the Eleventh Plan would be released within a month bringing out steps towards shift to a zero-based Budget.

Speaking on the sidelines of the Pravasi Bharatiya Divas, Mr Ahluwalia said, "The Planning Commission and the Finance Ministry have had elaborate discussions on the zero-based budget process and both agreed that this is ideal approach for a large country like India.

"Every ministry has many schemes and programmes that become redundant. A zero-based budget will ensure that such schemes are scrapped and more suitable ones are developed. However, this does not mean some of the schemes, which are managed across years, would be scrapped."

He said, "We will communicate to ministries about our intent to have a zero-based Budget from 2007 during the Eleventh Plan period. They will gear up to work towards this."

Accelerating growth: He said that the effort is now directed to accelerating the growth rate to catch up with the rest of the world and ensure that the benefits reach out to all sections of people. The Government's twin immediate priorities are directed on two broad areas — rapid infrastructure development and ensure that the agriculture growth rate comes back to 4 per cent.

"The PBD will help us communicate to the Indian Diaspora on the potential areas of infrastructure where they can participate under the public-private participatory model. Areas such as roads, ports and airports are focus areas and private participation in airports and the bidding process is at advanced stage. Though there have been some glitches, this process is now being handled at the highest level. This only reflects the transparency with which the entire process is being managed," he said.

The Railway Minister, Mr Laloo Prasad's announcement on opening up of container transport is a major step in the direction where private sector will have a role to play.

Infrastructure SPV: Answering queries, Mr Ahluwalia said that the Indian Infrastructure Finance Company, a special purpose vehicle, would get operational within a year. After the Union Cabinet has cleared it, the company has been set up and staffing process is under way. This will play an important role in the Government effort to provide infrastructure thrust.

Competing States: Referring to competition among States to attract investments, Mr Ahluwalia said, "There was nothing wrong with this approach. Even if it meant that states that have reformed and brought about changes are better placed in terms of attracting investments. The best way is to bring about reforms and match up to the level of other states."

Referring to the contributions made by the non-resident Indians, he said, "States that take to reforms will be able to attract more investments. Reforms at the Centre alone will not ensure all round development. If we have to boost the gross domestic product (GDP), the Centre and all states need to accelerate the reform process and collectively seek to woo investments," he said.