Our Bureau

New Delhi , Feb. 1

THE Prime Minister, Dr Manmohan Singh, today said that his Government was committed to a `broad-based and moderate' tax regime, even as he categorically ruled out disinvestment of Navratna public sector undertakings.

In his second press conference in the Capital since assuming office in May 2004, Dr Singh said that his Government had given an in-principle clearance for setting up of new pay commission for Central Government employees.

"We are committed to a broad-based and moderate tax regime. We do not believe in confiscatory taxation," Dr Singh said.

He said that if the economy continues to grow at the present rate of 7-8 per cent, it should generate sufficient resources for the Government. "The economy has been growing at 7-7.5 per cent for the last three years. We are now inching towards a growth rate of 8-10 per cent," Dr Singh said.

He said that there was no threat to food security or on the foodgrain prices front. "We are on the threshold of a record rabi crop. There is no threat to food security or food prices," Dr Singh said.

He said that Government was making efforts to enhance credit to the farm sector. "In the long run, there are possibilities of extending the scope of agriculture insurance."

On the pay commission, Dr Singh said that the Government has agreed in-principle to constitute a new panel. "The last pay commission was set up in 1994. It is time for a new pay commission. We are taking the necessary steps," he said.

Dr Singh said that he would soon hold discussions with state Chief Ministers on power sector reforms. "I would be meeting the CMs in another two weeks to discuss power sector reforms," he said.

Reacting to a question on proving free power, the Prime Minister said that he was in favour of public utilities being properly priced.

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