BUDGET 1999-2000
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BUDGET 98-99
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Government for fast-paced strategic disinvestment, says Sinha

Finance Minister Yashwant Sinha today said the government would go for fast-paced strategic disinvestment to generate the resources required to put the economy on a firm footing.

Participating in a panel discussion on Doordarshan a little after presenting the Union Budget for 1999-2000 in Parliament, the finance minister said, "I am much relieved that the industry has responded positively."

Sinha said, "We will go through strategic disinvestment at a fast pace," adding that he was confident the government would be able to raise the required resources.

Explaining what he meant by "strategic disinvestment", the finance minister said whatever the degree of disinvestment in a particular public-sector undertaking, the management would be handed over to the private-sector company making the investments so that it is run better and profitably.

The finance minister said, "We have our plans ready for strategic disinvestment and I am confident that the modest target of Rs100 billion will be more than met. We want disinvestment in the market to prop up the Indian capital market," he added.

Sinha said the fiscal deficit would be reduced below 2 per cent of the gross domestic product in the medium term.

"We will first try to completely eliminate the revenue deficit, which is now to the tune of 2 per cent," he said.

Regarding the revenue projections, he said, "We have already done away with zero-duty imports by imposing a nominal duty of 5 per cent on a large number of items."

The finance minister gave no firm indication on the status of the rupee.

"The market will determine the value of the rupee. The government's duty is to ensure orderly conditions in the foreign exchange market," he said.

Referring to the ninth plan document, he said the target for GDP growth in the next three years has been fixed at 7 per cent.

Budget 1999-2000

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