New Delhi: Worried over the revenue deficit, Finance Minister Jaswant Singh on March 3 said the proposed debt restructuring scheme of Rs 1,20,000 crore and cash management for various ministries would improve the fiscal deficit pegged at 5.6 per cent for 2003-04.

A Bill to bring in Constitutional amendments to enable states to share with Centre a portion of revenue from service tax and the electricity bill for furthering power reforms would be introduced in Parliament shortly, Singh said at Confederation of Indian Industry (CII)'s post-Budget meeting.

The government was looking at the possibility of including Wireless in Local Loop (WLL)-based mobile phones under the 1X6 scheme of assessing Income Tax while re- examining the possibility to lower the minimum Rs 100 crore capital requirement for health insurance companies, he said.

Admitting that the high fiscal deficit was a matter of concern, Singh said, "What worries me is the revenue deficit."

Although the government has curtailed expenditure to the tune of Rs 6,000 crore and introduced "cash management" system in major spending ministries, he said the government cannot continue to spend more than what it earns.

The buyback of high-cost securities worth Rs 40,000 crore from banks would address the burgeoning non-performing assets in the banking sector, while the debt restructuring scheme would enable states to save upto Rs 83,000 crore, he said, adding, "The Rs 1,20,000 crore debt reduction is bound to have a positive impact on debt recovery and fiscal management."

The initiatives taken in infrastructure building would spur economic activities, he said.

PTI