Days ahead of the next general elections, Finance Minister P Chidambaram has come out with a list of 10 tasks the govt of the day should follow to put India back on the fast track.
Check Fiscal Deficit
Target fiscal deficit at 3% of GDP.
Welcome Foreign Investment
India needs foreign capital as current account deficit to persist.
Push Financial Sector Reforms
Implement Financial Sector Legislative Reforms Commission recommendations that need no legislative changes immediately, set timetable for rest.
Balance Inflation, Growth
While targeting prices, RBI should keep growth concerns in mind.
Beef Up Infrastructure
Add & rebuild infrastructure. Adopt all proven models, rely more on PPP mode. Create new financing models for long term lending.
Revive Manufacturing
Special focus export manufacturing. Waive taxes or give concessions on products for exports. Ensure tariff protection as incentive to encourage domestic manufacturing.
Boost Skill Development
Skill development must rank alongside secondary and varsity education, total sanitation and universal health care.
Target Subsidies
Give them only to the absolutely deserving.
Focus On Urbanisation
Address decay in cities. Tap city wealth to raise resources.
States Should Share Responsibility
States must bear a reasonable proportion of funding of flagship programmes; this will give Centre leeway to allocate more resources for railways, highways & telecom.