Nobody expects wonders in the coming budget proposals. But there are few sectors where the Finance Minister could give fresh thoughts. Divestment is one such item. The govt usually depend the divestment process to fill the deficit gap. But it may be seen as a solution to revamp the functioning, especially of the weak PSUs.The govt should consider selling the shares of all the PSUs along with those under ‘Navaratna’ ranking. The PSUs, which lack public scrutiny, do not take any steps to improve the performance. Once the govt starts divestment across the board, all the PSUs may come under public scanner through balance sheets and related documents. While doing this, the govt should ensure to maintain control over the administration part whereas the management part may be entrusted with professional experts. The govt should consider infusing young blood into the workforce of all the PSUs by bringing suitable exit options for those who have put in twenty-five years of service.Another matter, which should catch the attention of the budget, is the interest of bank and post office fixed deposits. It is a known fact that many people still rely on such deposits for their livelihood. These people may not be concerned of technical factors like inflation of CRR but they are more concerned of their livelihood. The ongoing low interest regime would bring more hurdles to their day-to-day life, especially in the bad scenario of spiraling prices. As a measure of social security, the budget should ensure moderate rates of interest for deposits upto Rs five lacs.
C P VELAYUDHAN NAIR
lakshmivg@asianetindia.com
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