Cabinet panel on economic strategy to be set up

By Alok Mukherjee & P.K. Bhardwaj

NEW DELHI, SEPT. 4. Soon after sending a strong signal through the Cabinet reshuffle exercise that economic reforms were the top priority of the NDA Government, the Prime Minister, Mr. Atal Behari Vajpayee, today decided to set up a Cabinet Committee on Economic Strategy with the idea of providing stimulus to the economy which is witnessing a slowdown. It was also decided to set up a Group of Ministers to work out reforms in labour laws.

These were among the major decisions which emerged after a marathon meeting the Prime Minister had today with his Ministerial colleagues heading economic Ministries to find out ways to kick-start the economy. The Union Home Minister, Mr L.K. Advani, was however a special invitee and from among the officials, the Reserve Bank Governor, Dr. Bimal Jalan, was present. But the Union Ministers, Mr. Ram Vilas Paswan and Mr. Sharad Yadav, were not associated with this meeting.

The inputs for the Cabinet Committee on Economic Strategy would be provided by the Cabinet Secretary who will hold extensive consultations with individual Ministries to accelerate implementation of identified projects of various Ministries. This would be followed by the Finance Ministry and the Planning Commission taking steps for seeking approval of the expenditure involved in these projects.

The Cabinet Secretary has also been asked to hold discussions with the identified Ministries which figure in the reports of the Expenditure Reforms Commission so that the issue of downsizing of Government staff is settled once and for all. The Prime Minister will follow up the matter with individual Ministers subsequently, for a final decision.

Briefing presspersons after the meeting, the Finance Minister, Mr. Yashwant Sinha, said the focus of the meeting was to kick- start the economy with an envisaged spending of Rs. 75,000 crores. The focus of the spending would be the rural economy and the infrastructure sectors, he added. More such meetings had been planned in the future, Mr. Sinha said.

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