Planning Commission doesn’t care for FRBM – is the FM on his way out?
Fiscal Responsibility and Budget Management – FRBM is a very favourite topic of the FM, but the Planning Commission Deputy Chairman, Dr. Montek Singh Ahluwalia is not impressed. Dr. Singh is reported to have said that he did not care for FRBM targets so long he gets the money for the planned programmes. This was in a response to a letter written by the FM to the planning commission. PC is said to be critical of the Planning Commission’s approach paper. He is reported to have sarcastically remarked, “You do not repair a leaking water supply pipe by stepping up the water pressure”. The Planning Commission feels thatthe burgeoning current account deficit (CAD) will hinder economic growth, but Chidambaram argues that CAD is not a problem; it’s the government’s inability to provide a supportive investment climate.
Is Ahluwalia the future FM? And is Chidambaram going to external affairs? Raisina Hill is agog with all kinds of rumours. But immediately the Chief Commissioners of customs and excise are going to have a tough time tomorrow facing the acidic FM in the annual Chief Commissioners’ conference.