Finance Minister P Chidambaram on Monday brushed aside suggestions that the Left parties were creating roadblocks for the United Progressive Alliance government on economic matters, saying they were only putting forward their point of view, which was being duly considered.
"The Left parties have their points of view and we respect that. The Congress has its own model of development, which they should respect," he told reporters after re-launching Congress mouthpiece Veekshanam daily at a function in Thiruvananthapuram.
The finance minister said the Left was now inclined to accept divestment in non-Navaratna companies. On foreign direct investment, the government could move forward in civil aviation, telecom and banking sectors despite the Left's reservations.
"Decisions are taken only after discussions. We have been able to persuade them on several matters," he said.
Chidambaram said it appeared that the West Bengal government had "a more forward-looking" policy, which had brought investment to the state. An investment boom was visible all over the country especially in Karnataka and Maharashtra.
He said the Congress model of development had put India back on to the growth path in the last one-and-a-half years of UPA rule. The country was registering seven per cent growth, which if continued for another 10 to 15 years, would make it the third or fourth largest economy in the world.
The Congress' perception of development was that while market forces must have a play, the states had responsibility to take tangible benefits to the people, he said.
Chidambaram said the investment boom in Bengal was the result of state Chief Minister accepting the model of development put forward by the Congress.
Stating that investment in productive, efficient ventures alone would bring growth, more jobs and income, he said an atmosphere should be created to ensure the investor that his money was safe.
In Kerala, a climate had been created that deterred investment. The opposition should support the government in its attempt to bring in investment and keep politics out of economics, the finance minister said.
After the failure of the socialist model, even China was now looking for different models of development. The Congress re-examined its socialist convictions in 1991 and took the bold step for economic reforms, he added.
The UPA government, Chidambaram said, was taking up rural employment guarantee scheme, rural electrification scheme, rural health scheme and Sarva Siksha Abhiyan as it could amass enough resources to implement the projects for people's welfare.
The Centre had increased rural credit to Rs 1,41,000 crore (Rs 1410 billion) this year and a total of 1,75,000 educational loans worth Rs 3,500 crore (Rs 35 billion) were distributed last year.
About the huge rise in government debt in Kerala, he said debt would increase as long as there was fiscal deficit. Attempt should be made to control the fiscal deficit through tax and non-tax sources.
Kerala would receive Rs 19,607 crore (Rs 196.07 billion) under the 12th Finance Commission. The state had received Rs 3,931 crore (Rs 39.31 billion) till Nov 10 as plan assistance and Finance Commission share.
To a query on Volcker report, he said Congress had made it clear that it had nothing to do with any oil contract.
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