Fiscal target realistic: Jaswant

The government on Tuesday said the fiscal target set for 2003-04 was realistic and rejected as unfounded criticism that it would not be met.

"The apprehensions in this regard are unfounded," Singh said replying to the discussion on the general Budget.

Terming the current financial year as exceptionally difficult, Singh said the economy had been affected by global slowdown, standoff with neighbours and continuing terrorism.

Singh said the rising curve of fiscal deficit has begun to come down even as the economy was facing exceptional difficulties like the unprecedented drought, global downturn and the uncertainty of geo-political situation.

He said the growth rate of revenue collection of 13 per cent for the next financial year is achievable.

The non-tax receipts for current financial year  is estimated at Rs 72,759 crore (Rs 727.59 billion) as against Rs 69,766 crore (Rs 607.66 billion) for 2003-04.

These are realistic projections of revenue receipts and not unrealistic and are likely to be achieved.

Singh assured that there would be no underfunding for the projects.

He said the government had earmarked Rs 700 crore (Rs 7 billion) to meet the gap in the form of shortfall in revenue of states on account of introduction of proposed VAT from April 1.

The finance minister said a constitution amendment for phased removal of central sales tax has already been moved in Parliament.

Singh said the additional excise duty under VAT is not quantifiable and it is difficult to make accurate projections.

He said the government was committed to making the country a global health destination.

"I believe India has the potential and talent to become a global destination for which we have to improve the infrastructure and the arrival and departure in airports."

The minister said if Indian doctors could do well abroad, the same was possible for them to do it in their own country with improved infrastructure.

On the pension scheme for people of 55 years and above, he said the Life Insurance Corporation was preparing a policy with an annual interest rate of nine per cent per annum.

He said the government had deliberately chosen 55 as the minimum age as many people retired in this age group.