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Divestment programme has lost focus: Jaswant

Admitting that the divestment programme has lost focus", Finance Minister Jaswant Singh asserted there was no rethinking on the issue and the government will go ahead with it.

"The discussions (on divestment) issue wandered a bit and we lost focus. But there is no illusion in the government's mind, no deviation from purpose," Singh said while addressing the inaugural meeting of the Board of India Today Economists in the Capital on Friday.

Singh also clarified that while continuing with the process of divestment, the government will seek to address all the relevant questions that have so far been raised.

Singh said he was not in a position to reduce agriculture subsidy and pointed out that US, China and countries in the Western Europe have subsidies of around $1 billion.

"In the face of all this when as a non-economist I am told subsidy is bad and should be abandoned, I am left very confused", he told the gathering.

The finance minister said the biggest challenge was to ensure India's economic security.

Singh also expressed concern over the states' finances and said creation of a modern, efficient and world-class fiscal system for the country is high on the priority.

On the sickness in public financial institutions, Singh remarked that he has inherited some financial institutions that are not in good health. "I have to find solutions for them," he added.

Speaking on reforms, Singh categorically stated that there can be no growth without it. "This is simply not axiomatic -- it is the approach. There is no controversy in this regard," he added.

The Board of India Today Economists, a think-tank on economic issues, would meet four times in a year to discuss and debate the most pressing economic issue of the day and offer practical solutions, says an India Today release.

The Board has six economists as its members --- Suresh Tendulkar (Delhi School of Economics), Kirit Parikh (Indira Gandhi Institute for Development Research and member of Prime Minister's Economic Advisory Council), Indira Rajaraman (Institute of Economic Growth), Bibek Debroy (director of Rajiv Gandhi Institute of Contemporary Studies), Subir Gokarn, (chief economist, CRISIL) and Siddharh Roy (an economist).

Congress leader and former India Today columnist Jairam Ramesh moderated the discussions.

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