Following are the highlights of the economic policies of the United Progressive Allaince government spelt out in the customary Presidential address to the joint sitting of both houses of Parliament:-
Govt to aim for economic growth rate of at least 7-8 per cent annually for a sustained period.
A cess would be proposed on all central taxes to finance universal access to quality basic education.
Revenue deficit would be eleminated by 2009 so as to release more resources for investment in social and physical infrastructure.
Flow of agricultural credit would be increased, farm insurance schemes would be dovetailed, and special programme on dryland farming and remunerative prices for farm produce would be introduced.
Govt is committed to the rejuvenation, orderly development and functioning of the capital markets that reflects the true fundamentals of the economy.
Privatisation would be carried out on a case-by-case basis and chronically loss-making units would be either sold off or closed after providing legitimate dues and compensation to the workers.
Tax rates to be stable and conducive to growth, compliance and investment; major reforms to expand the base of tax payers and more citizen-friendly tax administration.
Subsidies to be targeted at the poor and needy, a detailed roadmap would be prepared for this purpose.
Value-added tax would be introduced in close cooperation and consultations with trade and industry.
UPA's common minimum programme to be implemented in the next five years.
Effective steps and strong measures would be taken to control the price hike of essential commodities.
To boost rapid export growth procedures will be simplified and tariffs appropriately harmonised.
The textiles industry would be enabled to meet the new challenges imposed by the abolition of quotas under the WTO.
A National Manufacturing and Competitiveness Council would provide a special package for the SSI sector.
Proper implementation of minimum wage laws for farm labour would be ensured. Effective measures would be taken to protect the interests of the agri-workers.
Fresh impetus would be given to the jute industry.
Labour laws would be revamped for rapid growth of the manufacturing sector and expansion of employment opportunities.
Guaranteed employment would be provided for 100 days in a year to at least one able-bodied person in each rural household. A National Employment Guarantee Act would be legislated.
Public-private partnership for expansion of physical infrastructure such as roads, ports, airports, power, railways and water supply and sanitation would be encouraged.
Public investment in agriculture would be stepped up significantly with focus on the backward and poor regions
The government would ensure that the flow of agricultural credit is significantly stepped up and the coverage of small and marginal farmers by institutional lending expands substantially.
The entire rural credit system would be restored to health. The government is sensitive to the debt-burden of farmers and would take suitable steps in this regard.
Waste and development projects would be promoted on a large-scale and the wasteland development programme lying dormant these past few years would be revived.
Negotiations in the Word Trade Organisation would be such as to fully protect the interests and livelihood of the large farming community.
The government would accelerate the development and use of the country's irrigation potential.
The government will adopt policies and expand employment opportunities by creating a climate conducive to investments in the organised sector.
Along with the vastly expanding credit facilities for small-scale industry and self-employment, services sector will also be given all support to realise its true employment potential.
The government would increase public spending on health to at least 2-3 per cent of GDP over the next five years, with the focus on primary healthcare.
UPA would ensure that all institutions of high learning and professional education get back the autonomy they enjoyed earlier.
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