Parekh Suggests Large PSU Divestments, Wants Pro-Growth Budget

On fiscal deficit, Parekh said the country will “have to live within your means“.

He added: “Certain amount of fiscal deficit is acceptable if there is growth. With a good growth of 7-8 per cent you can tackle a certain amount of fiscal deficit.

“With diesel and petrol prices being market-linked and with the direct transfer of subsidy, the government will save a lot of money on fuel and other subsidies. A lot of wastages and leakages would be avoided because of direct transfer and the benefit would be there.”

Parekh said: “They have opened over ten crore accounts and all of them have got Rs 1 lakh policies and 75 per cent of them have Rupay cards. That scheme has been a success. Many may not have used it, but now when subsidies come into those accounts, they will use those cards.

“I think on the fuel subsidy, they will save a lot of money this year. Apart from prices coming down, direct transfer will save money, diesel on market price will save a lot because diesel subsidy was very high once upon a time.

“Two-three years ago, the diesel subsidy was Rs 80,000 crore and it will be zero this new year. This is a huge benefit. Coal prices have come down, iron prices have come down, commodity prices have come down. All these are benefits.”
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