• PAGE ONE
• INDEX
• HOME

Fiscal discipline stressed

Our Bureau

MANGALORE, June 18

ALTHOUGH the fundamentals of the Indian economy are growing progressively stronger, there is an urgent need to practise `fiscal discipline', according to the Union Minister of State for Finance (Revenue), Mr. V. Dhananjaya Kumar.

The Government was planning a legislation to ensure that State Governments maintained fiscal discipline, he added.

Speaking at an `interactive session' at the Kanara Chamber and Commerce and Industry, Mr. Dhananjaya Kumar, said that with forex reserves of Rs. 3,900 crores, the economy was in a strong position, but said that more than 50 per cent of Government spendin g went towards debt servicing.

Suggesting that `we learn a lesson from economies such as Brazil which had gone bankrupt', the Minister said that countries which went over the brink lost control over their produce and also had to `face a situation where rich nations took away the debto r nation's women for their lust and luxury.'

Earlier, speaking at the valedictory session of a seminar on `The changing scenario of stock markets', Mr. Dhananjaya Kumar said that investors did not need more protection than they already had and the Government in its role as a `facilitator' was do ing all that it could to encourage investments in the capital markets.