LOK SABHA DEBATES

implementation and progress of re­ LOKSABHA form actions through a mid-term consultation to be held prior to end-January, 1992. In addition to serving as a catalyst to promote Saturday, February 29, 1992/Phalguna greater coordination among the vari­ 10,1913 (Saka) ous line Ministries to which the SAL/ SAC programme relates, the review would provided a forum to discuss with the authorities the recommenda­ The Lok Sabha met at tions of several high-level commit­ tees established by the Government Seventeen of the Clock and their incorporation to the extent appropriate in the 1992-93 Budget.” [MR. SPEAKER in the Chaif\ This is the agreement which the Gov­ Re. ALLEGED LEAKAGE $>F BUDGET ^ ernment has made under supervision by the PROPOSALS FOR 1992—93 TO THE IMF and World Bank and also on the provi­ WORLD BANK BY THE GOVERNMENT sions of the 1992-93 Budget. It is a very serious matter and it deserves justice at your [English] hands. This is what I want to know. The sovereignty of the Parliament has been SHRI VISHWANATH PRATAP SINGH breached and the economy of the country (Fatehpur): Sir, with your permission, I just has been subjected at the feet of the World want to draw your attention. We have pe­ Bank and IMF. We strongly protest against rused those documents which have been it. (Interruptions) laid by the Finance Minister and from them, it is clear that the Government has agreed to the surveillance of the IMF and the World SHRI SOMNATH CHATTERJEE Bank of the economy of the country. (Bolpur): Mr. Speaker, Sir, yesterday of behalf on the National Front and the Left Parties, The World Bank Report says that: we have sent to you a letter with regard to a very vital matter concerning the preparation That monitoring of macro-ecgnomic and presentation of the Budget. I request the performance, in particular, will be hon. Members .on the other side kindly to closely coordinated with the IMF. The give a little hearing with patience. ( Interrup­ Bank/Association will also monitor the tions?) In that letter, we had quoted in extenso (further quote: a provision from the World Bank Report dated 12th November, 1991 thatthese docu­ In addition to serving as a catalyst Id ments were made available to us after per­ promote greater coordination among sistent attempts on our behaff to obtain dis­ the various line Ministries...” Minis­ closure of vita! documents. The Govern­ tries of the Government of India, not ment never came to disclose the documents of the UJS.A.... -.... to which the SAL/ on their own. On the other hand, very SAC programme relates, the review unfortunately, the Finance Minster imputed would provideaforum to discuss with motives even to the press. Now, Sir, that the authorities....” authorities of the document, that Clause which we had Government of India....” the recom­ quoted - paragraph 97 at page 31 of the mendations of several high level World Bank Report - says: Committees established by the Gov­ ernment and their incorporation, to That monitoring of macro-economic the extent appropriate, in the 1992/93 performance in particular will be Budget....” dosefy coordinated with the IMF...” It refers to the macro-economic per­ Therefore, there has been a discussion formance of our economy. I again with regard to mid-term position, with regard • quote:". The Bank/Association...” to the recommendations of the review com­ that is, the World Bank and the Inter­ mittee, review committee consisting of the national Development Association.... Government of India’s representatives as win also monitor the implementation well as the IMF, the World Bank and the and progress of reform actions International Development Association. through a mid-term consultation to Therefore, they are aware of it. They have be held prior to end-January 1992. decided that they will dictate what is to be (Interruptions) incorporated in the 1992-93 Budget This was deliberally kept back from us. And, the AN. HON. MEMBER: What is there in it? hon. Finance Minister has taken a plea that Sir, what is happening now (Interruptions) he had not received the letter of 12th Novem­ ber, 1991. He never said that there was an SHRI VILAS MUTTEMWAR (Chimur): I agreement, the Report of the World Bank hope you have already spoken on that point which he was ultimately forced to disclose, (Interruptions) from which this very serious disclosure has been made. We are concerned about it Therefore, we wrote to you. We would Hce to SHRI SOMNATH CHATTERJEE: Eve­ know categorically from the hon. Finance rybody is helping your France Minister so Minster whether the Finance Minster in his that he can reply. If you do not have pa­ Budget has included this. (Interruptions) tience, what can Ido? Why are you interrupt­ ing? Is this a matter of frivolity? Is this a SHRI VILAS MUTTEMWAR: This is too frivolous matter that we are talking of? (Inter­ much. How can he disclose that now before ruption*) These documents were defiber- presenting the Budget? (Interruption^ a l ^ kept back from ParfiamenL Therefore, theWorld Bank has imposed aconditton that ■ MR. SPEAKER: I wilt take one minute, there would be a review, mid-term review, I will request the hon. Members to under­ mid-term oonsultation to be held prior to stand the solemnity of the occasion. We are end-January. 1992. ' going to present the Budget not to the Paris- Budget Proposals for Bank by G ovt merit alone but this present Budget is being dignity of this Parliament as we have been presented to the entire people of this coun­ doing and not taking i away as they are try. I am aflowing one or two Members to doing. Therefore, we want a dear and express their views. satisfactory answer from the Finance Min­ ster on this. ( Interruptions) M R SPEAKER: I am allowing Advaniji MR. SPEAKER: If Members are getting and then I am requesting the Fmanoe Minis­ up, interrupting and speaking, you are not ter later on. supporting the Finance Minister or the Par- Rament or me also. You please bear with SHRI LAL K. ADVANKGandhi Nagar): one or two Members who are expressing Mr. Speaker, Sir, ever since when a news their views in one or two minutes. Then, I will item appeared in a daily newspaper the request the Finance Minister to go to the 1Indian Express'abort the secrecy of Budget Budget being violated by the Fmanoe Minister through a letter written to the World Bank in (Interruptions) November, this House has been witnessing veryuproarious scenes. Many of us ex­ SHRI SOMNATH CHATTERJEE: I wiU pressed misgivings that an established tra­ take hatf-a-minute. That is why we made a dition of this House, if it has been violated or request to you to see that the rights of the breached, we should take it seriously. Nor­ Members are not prejud iced or taken away. mally, I would not have Rked to raise this Therefore, we made a request, if it is not a issue today taking into account the solem­ part of the Budget, as they say, then that nity of this occasion. But because you have should be made available to the Members of permitted a couple of Members to raise the House. We would like to know what is some points, therefore, before the Fmanoe there in those mid-term recommendations Minister presents his Budget, I would Kke to made by the Review Committee. Therefore, emphasise the same point that my colleague we made this request.. . yesterday pointed out that there can be two opinions, whether in the present economic MR. SPEAKER: I received your request situation, this country ought to go to the World Bank or the IMFto secure assistance SHRI SOMNATH CHATTERJEE: With or we can manage on our own. And that can respect we made a request to you to see that be debated at length in the course of the the rights of the Members are fully protected Budget discussion othfcr occasions. Once and they are made aware of the contents of we agree to go to the IMF of go to the World the relevant document as mentioned in the Bank, they would naturally be imposing provisions quoted above. That is signed by conditions and we would have to respond to all the leaders from this side. it. As I sa\d...(tnterrupUons)

When you have permitted me, if the Mr. Speaker, Sir, I say,, along wfth my Treasury Benches feel that the voice of the colleagues, that a gross impropriety was opposition can be throttled in this manner by committed. Whether it can be technically a their stiR minority ruling party, despite aH breach of Budget secrecy or not Is a matter manipulations played they are stiR in minor­ for you to judge and decide on the basis of ity, then we shall not s i here idle for the the privilege motion. But agross impropriety purpose of being tortured, being throttled. had been committed when in the course of We shaR take aR steps consistent with the these letters in which we could have PASWAN: No one response to the condtionality, but the moment has got the right to mortgage the country. we say that we propose to do this in the This Government wants to mortgage the coming Budget of 1992-93,1 feel and my country.... (Interruptions) First you listen colleagues feel that an impropriety was pleasa... ( Interruptions) committed. It would have been better if we. (Interruptions). I would conclude that in so [English] far as policies are QDncemed, as Shri Indrajit said yesterday, they are very often Part A of MR. SPEAKER: Please take your seat. the Budget And till now Part A and Part B I am not going to hear you. both havebeen demand secret. But there is one particular Report Which has been pre­ (Interruptions) pared and submitted to the Government, which is the Chelliah Committee Report which SHRI RAM VILAS PASWAN: I am not deals with taxation. And this taxation is the going to yield also crucial and vital part of any Budget. If that Chelliah Committee’s Report has also been MR. SPEAKER: You have to. discussed with the world Bank, then I am afraid that a very serious lapse has been (Interruptions) committed by the Finance Minster. If it has not happened, I would feel reassured. MR. SPEAKER: This is not going on Therefore ray simple question would be, record. whether the Chelliah Committee report on taxation reforms has also been discussed (intehruptionsY with the World Bank or not. (Interruptions) MR. SPEAKER: This is not correct. I THE MINISTER OF FINANCE (SHRI allowed your leaderto speak...(lnterruptions) MANMOHAN SINGH): Mr. Speaker Sir, I had appointed two committees, (interrup­ MR. SPEAKER: Not like that tions) (Interruptions) * ‘ The Narasimhan Committee Report was placed on the Table of the House in Decem­ ber. ' MR. SPEAKER: I don't appreciate this kind of imposition by the Members on the [Translation] House itself. I allowed the leaders to ex­ press their views. This is unusual to allow SHRI RAM VILAS PASWAN (Rosera): the Members to speak before the Budget is Mr. Speaker, Sir, we have written a letter to presented. Yet, with defence to the letter and you (Interruptions) first you please with deference to the leaders I did allow. I listen. This agreement was made on 5th would appreciate Shri Paswan who is the December (Interruptions) Deputy Leader of his Party to take into con­ sideration that his leader has spoken and he M R SPEAKER: Your leader has al­ may please cooperate with the Parliament ready spoken. You should not speak, (Inter- and cooperate with the Finance Minister and mptions) ' cooperate with the country.

* Not recorded (Interruptions) [Placed in Library See. No. LT-1397/92].

SHRI BASU DEB ACHARIA (Bankura) As far as the main Report is concerned, Yog allow some leaders of other parties also. two copies of the Report are being placed in SHRI MANMOHAN SINGH: I wish to the Library of the House. {Placed in Library assure you that there is no leakage of the See. No. LT-1398/92]. Budget. I repeat that. I wish to assert that I have committed no impropriety of any. kind. I wish to assert once again and assure (Interruptions) this August House that there has been abso­ lutely no leakage of any Budget secrets. I MR. SPEAKER: May I request the hon. accept full responsibility for this. (Interrup­ Members not to dap because we would like to hear what the Finance Minister is saying? tions)

(Interruptions) MR. SPEAKER: Mr. Finance Ministers present the Budget. SHRI MANMOHAN SINGH: I am an­ swering that. (Interruptions)

Hon. Leaderof the Opposition has asked a specific question about the Chelliah Corrv 17.20 hrs. mittee report. I wish to assure this House that this is a top secret document, it has noi GENERAL BUDGET, 1992-93 been made available to anybody outside the Ministry of Finance. We have not shared this [English] report with anybody outside; neither with the IMF nor with the World Bank. Therefore THE MINISTER OF FINANCE (SHRI there is no question of Budget leakage. MANMOHAN SINGH): Sir, I rise to pfesenT I had intended to place this Report on th«T budget for 1992-§3. the Table of the House. I had already given notice. You had agreed that I could place The fiscal year now drawing to a close that report on the Table of the House on 3rd has been a difficult one by any standards. It of March. If you permit me today, I am ready has been a year of crisis and of crisis man­ to place that Report right here on the Table agement. It has also been a year of great of the House. economic challenges and bold new initia­ MR. SPEAKER: You have the permis­ tives. sion. Honourable Members would recall that when the new Government assumed office eight months ago, we inherited an economy 17.19 hrs. on the verge of collapse. Inflation was accel­ PAPERS LAID ON THE TABLE erating rapidly. The balance of payments w^^tn serious trouble. The foreign ex- Chelliah Committeo4teport ;el|apgg/eserves were barely enough for two weeks of imports. Foreign commercial banks [English] had stopped lending to India. Non-Resident Indians were withdrawing their deposits. THE MINISTER OF FINANCE (§HR1 Shortages of foreign exchange had forced a MANMOHAN SINGH): The summary of the massive import squeeze, which had halted Report Is being placed on the Table of the the rapid industrial growth of earlier years House right away with your permission.