National

Focus on sectoral packages
By Alok Mukherjee

NEW DELHI, FEB. 12. The Government is planning a strategic change in its attempts to revive the economy. According to official sources, policy-makers have concluded that the Centre alone cannot reverse the declining economic trend by simply spending on select road and highway projects attempted since last September and a more coordinated plan is required for an overall revival of the economy.

Consequently, a move is now being made to focus on sectoral packages and to involve the States in a large way to attempt a balanced economic growth. These sectoral packages have been finalised by the Planning Commission and are now with the Union Finance Minister, Yashwant Sinha. Most probably, the packages, along with the recommendations accepted by Mr. Sinha, will find their way in the coming budget.

There is much anticipation that the budget will be thick in terms of sectoral packages. Under his consideration are packages for the steel sector where a severe recession has resulted in many new projects being stopped half-way while the existing producers are fighting a major battle to protect their bottomlines. Another package pertains to the textile sector where the Prime Minister, Atal Behari Vajpayee, is said to be interested. The textile industry, which is spread out all over the country and accounts for substantial urban and semi-urban employment, has a significant political weight attached to it and hence the reported interest in reviving it. This industry has been facing a steep slump in demand since January last year with export orders dwindling. It is in the recent months that some positive signs are visible on the textile front and the budget could provide some more boost to it.

Then there is the much talked about policy package for the agricultural sector which might be accompanied by a food management policy. Mr. Sinha has made it public more than once that his next budget would focus on agriculture in a big way and this aspect might feature prominently in his budget.

Simultaneous with the budget preparation, the Tenth Five Year Plan is also being finalised and in this, the States might find more resources for them along with more responsibilities.

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