New Delhi: Terming the ambitious eight per cent 10th Plan growth target as achievable, President A P J Abdul Kalam on February 17 indicated that the Budget would restructure the tax system on the basis of the roadmap laid out by the Kelkar Panel.

"The imperative of fiscal consolidation requires that public finances are managed better. This can take place only through greater collection of revenue and controlling unproductive expenditure," Kalam said, adding Kelkar committee's reports are a road map for creation of a "stable, transparent and efficient tax regime".

In his first address to the joint sitting of Parliament, Kalam said the ambitious eight per cent growth set out in the 10th Plan was "achievable". It has distinguished itself from the previous plans by underscoring that it is not merely a resources plan, but a reforms plan, he pointed out.

Kalam said the process of disinvestment has gained irreversible momentum as part of the wider policy of economic reforms.

Stressing the need to control expenditure, Kalam said both the Centre and states need to rationalise their revenue expenditure and to target their subsidies better. The 12th finance commission, which has recently been set up, will address these important issues.

Elaborating on disinvestment, Kalam said state governments are following this policy, which showed that there was "consensus" in practice.

He said the proceeds from disinvestment reduce the burden of public debt, thereby releasing public resources for social and infrastructure sectors.

During the current year, out of 13 cases of disinvestment so far, 11 were of loss making units, he said, adding the procedures for disinvestment has established "benchmark" norms for transparency, efficiency, administrative simplicity and non-discretionary decision-making.

On the value added tax system coming into being from April 1 this year, Kalam sought to set at rest apprehensions of the states that they would lose revenue in the initial period, saying the Centre has assured compensation for revenue loss, if any.

Kalam said the government intended to bring in a new civil aviation policy, which will liberalise the sector, usher in regulated competition, attract investment and modernise airports to provide affordable, but world class services to passengers.

The Information Technology (IT) and telecom revolution, which brought laurels to the country and professionals has brought dramatic improvement in quality and dramatic fall in tariffs.

The telecom revolution has also empowered postal services in the country and post office network in India is poised to offer many new value added services, he said.

The recent dip in estimates of the gross domestic product (GDP) growth to 4.4 per cent has been entirely due to the shortfall in agricultural production, Kalam said, "This has once again highlighted the need to rescue our agriculture from its excessive dependence on the monsoon by increasing public investments in irrigation and in all other inputs that increase farm productivity.

"The government has a coherent and well-integrated strategy for boosting economic growth. Despite the global slowdown, the past year has been a fairly good year, as India continues to be rated amongst fast growing economies," he said.

On power sector reforms, Kalam said the good news was that it was showing slowly but surely positive results and till now 18 states have signed memorandum of understanding (MoU) under the accelerated power development and reform programme.

A comprehensive electricity Bill is before Parliament for approval and "I am happy to announce that the plan to achieve 30 per cent energy savings in government buildings has well and truly begun in Rashtrapati Bhavan and Prime Minister's office."

Maximum self-reliance is a cornerstone of "our" energy security strategy, Kalam said, adding three rounds of bidding have been invited and a new exploration licensing policy and 70 blocs have been awarded involving an investment of about $ 3 billion.

A fourth round is planned, he said adding this policy has been able to achieve its objective of expanding and accelerating exploration, especially in deep-water areas. It has started showing positive results with big discoveries made in several places.

Turning to capital markets, he said the government has recently taken series of corrective and promotive steps to restore investors faith and institutions health, including re-structuring of Unit Trust of India (UTI), strengthening Securities and Exchange Board of India (SEBI), Securitisation Act and decision to set up serious fraud investigation office.

The report of the Naresh Chandra committee on corporate audit and governance was being examined, he said adding the problems faced by Industrial Development Board of India (IDBI) have necessitated its re-structuring into corporate entity.

Noting that a nation-wide unique social security number for each worker was being launched, Kalam said a comprehensive umbrella Legislation for workers in the unorganised sector was being finalised for introduction in this Budget session of Parliament.

The textile sector was grappling the challenges of globalised market and problems created by slow modernisation, Kalam said adding several new schemes have been approved to improve facilities in major textile centres, besides sanctioning nine apparel parks with state of the art machinery in the country.

At the same time, the problems of traditional handloom and handcrafts sector, which provide livelihood for vast numbers of weavers and artisans were also being comprehensively addressed through a special package of measures, he said.

The government has taken new initiatives for strengthening small scale sector to make it globally competitive, Kalam said, adding the schemes included de-reservation of items in a phased manner, collateral-free loans and promotion of small scale industries in the knowledge economy.

The Ministry of Agro and Rural Industries was implementing number of programmes for creation of employment opportunities for the educated unemployed both within and outside khadi and village industries system, he said.

PTI