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Sinha promises incentives for productive expenditure

BS Economy Bureau

The government will incentivise ministries by providing them with additional funds if they successfully spent the budget allocated funds in productive areas.

In a press conference today, Finance Minister Yashwant Sinha said, "These ministries can receive further funds for productive purposes."

The emphasis would, however, be on commencement and completion of work on the ground, he said.

Sinha said that he had told his colleagues in the government to start spending the budgeted amount without waiting for the year to end.

He had held consultations with the power, Railways, agriculture, housing and urban development, textile and a few other ministries in the last two weeks.

The finance minister who proposes to meet the civil aviation and the minister of steel in the coming days would also exhort them to step up expenditure in their respective ministries.

The minister had earlier last week told the financial advisors of various ministries that it was their responsibility to promote capital expenditure and keep a strict control over revenue expenditure.

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