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Tuesday, Dec 02, 2008
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Chidambaram: none can steer the economy better than Manmohan

Special Correspondent

—Photo: R.V. Moorthy

CHANGE of GUARD: Home Minister P.Chidambaram, after assuming charge, at North Block on Monday. Home Secretary Madhukar Gupta is also seen.

NEW DELHI: Although there is “unfinished work” in the Finance Ministry, the country’s economic growth will be “satisfactory” at 7-8 per cent this fiscal despite the ongoing slowdown, P. Chidambaram said at his last press conference as Finance Minister, before assuming charge as Home Minister on Monday.

Inflation would moderate further, he said here.

Mr. Chidambaram asserted that no one could steer the economy better than Prime Minister Manmohan Singh, given his exceptional background, especially in such a difficult year of global financial crisis. “There is unfinished work in this Ministry [Finance]. The whole country is extremely reassured. Speaking personally, I am more than reassured by the fact that the Prime Minister has decided to keep the portfolio with himself. At least for the time being, I am told.”

This difficult year the country was in need of close coordination among the Finance Ministry, the Planning Commission and the Reserve Bank of India, Mr. Chidambaram said. “We have in Dr. Manmohan Singh a former RBI Governor, a former Planning Commission Deputy Chairman and a former Finance Minister ... I have no doubt in my mind that with this exceptional background, Singh will be the guide to the economy far better than anyone [else].”

To a question on the Finance Ministry’s unfinished agenda, he countered: “How can there be no unfinished agenda?”

Although he did not elaborate, it is common knowledge that the government is yet to carry out reforms in banking regulations and certain sectors such as pension and FDI (foreign direct investment) in insurance.

As for the new income tax code to replace and simplify the archaic Income Tax Act, Mr. Chidambaram said the Central Board of Direct Taxes would release a discussion paper on the code at an appropriate time.

Speaking on the change in his portfolio, Mr Chidambaram said: “When the Prime Minister conveyed his decision to me, I would be less than honest if I do not say that I was disinclined. But in a situation like the one we find ourselves in… the final call was taken by the party leader, the Congress President [Sonia Gandhi], and the Prime Minister. I have therefore answered the call of duty… It is in that spirit that I leave behind this [Finance] Ministry and move to the Home Ministry.”

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