<b>XI LOK SABHA DEBATES, <i> Session IV (Budget) </i> </b>
XI LOK SABHA DEBATES, Session IV (Budget) Tuesday , May 06 , 1997 / Vaisakha 15 , 1919 (Saka)


Type of Debate: BUDGET (GENERAL)
Title: Appropriation (No.3) Bill,1997-98. Bill Introduced Motion for Consideration TEXT : 18.02 hrs.

THE MINISTER OF FINANCE (SHRI P. CHIDAMBARAM): I beg to move for leave to introduce a Bill to authorise payment and appropriation of certain sums from and out of the Consolidated Fund of India for the services of the financial year 1997-98.

MR. SPEAKER: The question is:

"That leave be granted to introduce a Bill to authorise payment and appropriation of certain sums from and out of the Consolidated Fund of India for the services of the financial year 1997-98."

The motion was adopted.

* *

SHRI P. CHIDAMBARAM: I introduce** the Bill.

SHRI P. CHIDAMBARAM: I beg to move:

"That the Bill to authorise payment and appropriation of certain sums from and out of the Consolidated Fund of India for the services of the financial year 1997-98, be taken into consideration."

MR. SPEAKER: Motion moved:

"That the Bill to authorise payment and appropriation of certain sums from and out of the Consolidated Fund of India for the services of the financial year 1997-98, be taken into consideration."

SHRI RAM NAIK (MUMBAI NORTH):

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_________________________________________________________________________

*Published in the Gazette of India, Extraordinary, Part-II, Section-2, dated 6.5.1997

**Introduced with the recommendation of the President.

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MR. SPEAKER : You have to give a notice. You cannot raise it without notice.

SHRI BASU DEB ACHARIA (BANKURA): Mr. Speaker, Sir, the modernisation of the mills of the NTC is pending for long. The scheme was prepared and it was approved by the Cabinet. An announcement was also made on the floor of the House by the former Minister of Textiles, Shri G. Venkat Swamy that the modernisation of all the mills of the NTC by selling the surplus land has been finalised and approved by the Cabinet. Till now nothing has been done in regard to the modernisation of the mills of the NTC.

The workers of the mills of West Bengal, Bihar, UP, Maharashtra - and even in Ahmedabad - are not getting their wages. It is the same case almost in all the States, except Tamilnadu.

I demand that early decision be taken in regard to modernisation and revival of all the sick mills of National Textiles Corporation. Not a single mill should be closed down because a large number of workers are engaged in these mills. So, I urge upon the hon. Minister, particularly the hon. Finance Minister, to provide more funds for modernisation and revival of NTC mills.

There are a number of sick public sector undertakings which have been referred to the BIFR, but because of the refusal of the promoter of the sick public sector companies which refused to approve the revival package which has even been approved by the BIFR, these sick public sector undertakings are not being revived. For example, take the case of MAMC which is a joint engineering unit in West Bengal where there are more than 4000 workers. For the revival of this company, Rs.141 crore will be required, that too, not in one go. Similarly for the revival of the units of Hindustan Fertiliser Corporation at Barouni, Durgapur and Namrup, the revival packages have been prepared and approved; but the Finance Ministry has not provided financial assistance and hence, all the units of HFC have not been revived. We are importing urea by spending thousands of crores of rupees.

So, I request that the revival packages which have been approved, should immediately be finalised and all the units of Hindustan Fertiliser Corporation and the Fertiliser Corporation of India should be revived.

MR. SPEAKER : Thank you very much. Shri Nirmal Kanti Chatterjee.

SHRI P CHIDAMBARAM: Has he given a notice?

MR. SPEAKER : Yes. The notice was received late, but I am just allowing him.

SHRI P CHIDAMBARAM: What is the subject? That is what I want to know.

MR. SPEAKER: I have not communicated that also to you. It is something about increasing the allocation for certain Departments.

SHRI NIRMAL KANTI CHATTERJEE :It is on Appropriation Bill. I will mention it. I will indicate the subject also. Why are you interrupting me?

Sir, another hon. Member has already raised the question of public sector enterprises in the sector of industries.

... (Interruptions)

MR. SPEAKER: No. It cannot be done. The rules do not permit that. Please do not break the rules. A notice has to be served for raising something at this stage. You cannot do like that.

SHRI NIRMAL KANTI CHATTERJEE The reason why we have raised it is that the Demands have been guillotined and many of us want that for the Departments which have been guillotined, more funds should be allocated. That can only be stated at the time of passing the Appropriation Bill. That is why, I am mentioning certain areas where these things should be done.

This morning we have discussed about the Railways. We have tried to draw the attention of the hon. Finance Minister also, that in the Railways there are so many Demands; but the investment of Rs.8300 crore is the figure which was provided for the last year. That means that in real terms, the expenditure has come down. I would request the hon. Finance Minister to give thought to the fact that the Railways being the most important infrastructure of the country, which is never intensive and which opens up the backward Secondly, there are public sector enterprises. It is not enough that he has made certain provisions like about Rs.1100 crore but that is as working capital. That is only non-Plan assistance for payment of wages. What else have our public sector enterprises got? Let us face the fact that in the course of the last 50 years, while we did establish many important public sector enterprises, subsequently, we have failed to provide enough funds to modernise them.

MR. SPEAKER: I think this point has been made by Shri Basudeb Acharia.

SHRI NIRMAL KANTI CHATTERJEE No. This is not the point that he has made. I am distinguishing it here. Therefore, massive investment in terms of employment should be made in these areas and unless we do that, we cannot keep employment ready. That is the second point which I would like to make.

The third point which I would like to make is this. We all know that on agriculture and rural employment, this year's allocation is less in real terms than what had been provided last year. One argument that has been given is, in fact, there is a rise in terms of actual expenditure. Now, they are not comparable because this year also, after making a provision, the hon. Finance Minister in his wisdom may decide that in order to control fiscal deficit, expenditure should be cut. The comparable items are Budget expenditure of last year and the Budget expenditure of this year. In those terms, agriculture has got much less, rural development has got much less, and rural employment has got much less. And we are all committed even in terms of CMP that within a target date, we want to provide employment to everyone who seeks employment in this country. I therefore request the Finance Minister to consider this aspect also. The question of resources will come later. We cannot discuss it now. When we take up the Finance Bill, we may discuss it. These are the areas on which the Finance Minister may respond and comment.

THE MINISTER OF FINANCE (SHRI P. CHIDAMBARAM):

Mr. Speaker Sir, other Ministers will reply to the specific points raised by hon. Members, Shri Ram Naik and Shri Basudeb Acharia on particular Ministries. But I wish to reply generally to the last two points raised by both Shri Nirmal Kanti Chatterjee and Shri Basudeb Acharia.

Sir, agriculture, rural development, rural employment and irrigation are very high on the agenda of this Government. In fact, 1996-97 is not to be taken as a bench-mark for reasons which are obvious, the reasons being that the Government assumed office only in June; the Budget was presented only on the 22nd July and it was passed only on the 13th September. So, that year was bound to be a year in which there was a shortfall in the Plan. Nevertheless, substantial expenditure was incurred in 1996-97. I have the figures sectorally. They are contained in the `Budget at a Glance' which has been circulated to hon. Members. On agriculture, for example, Rs.2620 crore was spent last year; on rural development, Rs.6664 crore was spent and on irrigation and flood control, the figure is Rs.815 crore apart from the provisions that we have made for some other ancillary activities.

Now, the hon. Member, Shri Nirmal Kanti Chatterjee says that I must compare Budget expenditure with Budget expenditure. Frankly speaking, I think he has misworded it. It is Budget Estimates. But the real expenditure is in the Revised Estimates, that is, what I am spending in that year. I have, therefore, gone by the practice of the past. We looked at what the Ministries have spent last year and the Planning Commission has made provisions for this year. There are substantial increases over what was spent last year. It is not my case that these allocations are adequate.

It is not my case that these allocations are sufficient. But I have already made a promise and I repeat that promise that this year with the support of the Prime Minister, we will come to Parliament once in three months and report the Plan expenditure of each ministry and each department. It will give Parliament an opportunity to monitor the performance of each ministry and each department once in a quarter. If a ministry or a department is able to spend moneys allocated to it and is able to raise the resources it promised to raise, I assure you that we will provide more money to that department and to that ministry. You will have an opportunity to monitor it during the year and we are not taken by surprise at the end of the year that Plan allocation has not been spent. Nevertheless, I wish to point out that allocations are quite large this year. For the Ministry of Agriculture, it is - sectorally Rs. 2,969 crore. In the area of Rural Employment and Rural Development, the Revised Estimate, including Budget support and IEBR, is Rs. 9,095 crore. In Irrigation, including the Accelerated Irrigation Programme, it is Rs. 323 crore plus Rs. 1,300 crore. I think, all of us should ensure that these ministries spend the money. All of us must ensure that the ministries raise the money which they promised to raise. If they raise the money, if they spend the money and if they want more money, this Government will not be found wanting in providing that money.

On the point about PSUs, I am glad that Members have raised this point. Now, what is the position on PSUs? What I have said in my Budget speech, providing Rs. 1,100 and odd crore, is only a non-Plan assistance in order to ensure that PSU workers are not denied their wages when restructuring proposals are pending. But please remember the record of this Government. Last year, we have approved revival packages for units under Bharat Bhari Udyog Nigam, Bharat Yantra Nigam, Hindustan Paper Corporation, Scooters India, HEC and Bharat Refractories. This year, I have said that we will approve more restructuring proposals during the course of this year. When restructuring proposals are approved as presented by the BIFR and approved by the Cabinet, surely, money will be provided for those revival packages. We are as anxious as any other section in this House to ensure that revivable PSUs are revived and they are put on the road to recovery and health.

As far as the budgetary support for PSUs and Plan expenditure in PSUs is concerned,I urge the Members to look at `Expenditure Budget, Volume I'. There is a Head known as `Plan Investment in Public Enterprises' beginning at page 51 and ending at page 56. The total Plan investment in public enterprises in 1997-98 will be of the order of Rs. 63,309 crore. This is made up of Rs. 4,829 crore as equity, Rs. 2,771 crore as loans, Rs. 31,153 crore internal resources, Rs. 11,818 crore as bond and debentures, Rs. 5,517 crore as external commercial borrowing and Rs. 7,218 crore as other resources.

Rs. 63,000 crore is not a small amount. If Rs. 63,000 crore are invested in public enterprises in one year, it is a large amount. The point we must make - I would urge Shri Nirmal Kanti Chatterjee to join me in making this point - is that the public sector enterprises must show a healthy return on these Rs. 63,000 crore. I am borrowing at the rate of 13 per cent. Taxpayers' money is not free money. It is coming because taxpayers are willingly paying taxes. They must earn a return. If Rs. 63,000 crore are productively invested, there is a healthy return. If public sector enterprises show a healthy return, surely, the Government will provide more money for investment in the public sector.

I submit that we are committed to the public sector. We are committed to investing in the public sector. We are committed to reviving revivable public sector enterprises.

SHRI RAM NAIK :What about the points raised by me.

SHRI P. CHIDAMBARAM: Individual Members can ask the individual Ministers.

THE MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI T.R.BAALU): Mr. Speaker, Sir, the hon. Member, Shri Ram Naik, has raised some points. As far as the Oil Pool Deficit Account is concerned, on 31st March, 1997, there was a deficit of Rs. 15,500 crore. To contain the oil pool deficit, the Government is having a lot of ways and means. It is under the active consideration of the Government.

As far as the price of natural gas is concerned, on 1st January, 1992, the on-land price was Rs. 1,500 per thousand cubic metres.

If it passes through the HDE pipeline then there is an additional cost of Rs. 18 per thousand cubic meters. Now, for the north eastern region there is a concessional rate of Rs. 1,000 per thousand cubic meter minus a discount of Rs. 400.

SHRI RAM NAIK :Are you going to increase the prices of petroleum and diesel?

this are under the active consideration of the Government.


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