Our foreign policy will have muscle: L. K. Advani

The National Democratic Alliance, if elected to power, would pursue a “muscular foreign policy” that would preserve the country’s autonomy and secure its interests in the neighbourhood, Bharatiya Janata Party leader L.K. Advani said here on Monday.

Mr. Advani was summing up the party’s view after a meeting with experts on foreign policy issues at his residence.

Later, the former External Affairs Minister, Yashwant Sinha, who was present at the meeting, told journalists: “India cannot depend on the United States to protect its national interests. We have to do it ourselves.”

A “muscular” foreign policy did not necessarily mean that India would be prepared to go to war to protect her interests. However, countries in the neighbourhood should know “they cannot take India for granted,” he said.

Asked about Operation Parakram, under which troops were mobilised on the border with Pakistan after the terrorist attack on Parliament, Mr. Sinha said he did not agree with his colleague Jaswant Singh, who had said that he would not defend that move. “I was a member of the Cabinet Committee on Security Affairs at the time. We took that decision to mobilise troops, and I will defend it.”

Mr. Sinha added that the January 6, 2004, joint statement with Pakistan, in which Pakistan for the first time said it would not allow territory under its control to be used for launching terrorist attacks on India was a product of Operation Parakram. “Let me say, without Operation Parakram we would not have been able to get the January 6, 2004 statement.”

Those involved in the exercise at Mr. Advani’s residence described the United Progressive Alliance government’s foreign policy as a total failure.

The relationship with Iran was jeopardised as a result of pressure from the U.S.; Russia had been neglected; the countries in the neighbourhood were no longer listening to India; India continued to turn a blind eye to illegal immigration from Bangladesh; the UPA failed to engage African and Latin American countries; and India’s support of the candidature of Shashi Tharoor for the post of United Nations Secretary-General was a disaster, the BJP said.

Asked to reiterate his party’s stand on the nuclear deal with the U.S., Mr. Sinha said: “We would like to re-negotiate it.”

Among those present at the interaction were the former Ambassador to Sri Lanka, N.N. Jha; the former Foreign Secretary, Shashank; the former Lieutenant Governor of Delhi, Vijay Kapoor, and party spokesperson Ravi Shankar Prasad.

BJP plays terror politics again, criticises Govt for 26/11

BJP issued a clarification last week on Narendra Modi's comments that local help was involved in the Mumbai blasts. The step was taken after Pakistan was quick to use the remark in its defence. But later the party must have felt that there was no need to be embarrassed so L K Advani raised it again the Lok Sabha.

Indian Budget 2009-2010->Defence allocation raised by 34%

NEW DELHI: Pranab Mukherjee has presented the interim budget in the Lok Sabha for the next fiscal. There were expectations that measures will be announced to cushion the impact of global meltdown on the Indian economy, and help revive consumer demand.

The exercise began with Mukherjee reading out his budget speech in the Lok Sabha, during which he will also seek an approval to finance the government's expenditure, till such time the regular budget is presented by a new government after elections, and passed by parliament.

Acting finance minister Pranab Mukherjee announced an extension of interest subsidies to debt-hit farmers, one of the first measures in his budget speech.

Pranab Mukherjee announced that the India Infrastructure Finance Company will raise Rs 10,000 crore from the market by end of March 2009.

India Infrastructure Finance Company will finance 60 percent of commercial loans in private public partnership in critical projects, he said.

The organisation is to raise Rs 30,000 crore from the market in the next fiscal year.

In the wake of the Mumbai attacks, the govt increased the defence expenditure to Rs 1,41,703 crore. In 2008-9, the total defence expenditure was Rs 105,600 crore.

Highlights of the Budget
Following are the highlights of the interim budget presented by acting finance minister Pranab Mukherjee in the Lok Sabha Monday:

*Budgetary support increased for Ministries of Rural Development, Road Transport & Highway, Power, Railways, Industrial Policy & Promotion and IT.
*Rs 40,000 crore relief extended through tax cuts to counter economic slowdown.
* Defence allocation increased to Rs1,41,703cr in wake of Mumbai attacks.
* Revised fiscal deficit estimated at 6 per cent of GDP as against 2.5 per cent in the Budget estimate. Revised revenue deficit placed at 4.4 per cent as against 1 per cent in the Budget estimate for 2008-09.

*Fiscal deficit has gone up from Rs 133,287 crore in the budget estimates to Rs 326,515 crore in the revised estimates for 2008-09.

*Rs 40,000 crore relief extended through tax cuts to counter economic slowdown.

*Budget estimate for expenditure for 2009-10 put at Rs 953,231 crore. This includes Rs 285,145 crore for plan expenditure while non-plan spend put at Rs 668,883 crore.

* India remains second-fastest growing economy in the world
* Economy expected to grow 7.1 percent this fiscal
* Need to make economic growth inclusive
* Government spent Rs.70,000 (Rs.700 billion) crore on 37 infrastructure projects in 2008-09
* Under public-private partnership (PPP), 54 central infrastructure projects approved
* Total expenditure of PPP projects estimated at Rs.67,700 crore (Rs.677 billion)
* India Infrastructure Finance Company to raise Rs.10,000 crore (Rs.100 billion) by end-March
* India has weathered inflation crisis, but no room for complacency
* Country's agriculture outlook is encouraging
* Focussed attention to agriculture
* Plan allocation for farm sector hiked 300 percent in past five years
* Three-fold increase in short-term agriculture credit to Rs.250,000 crore (Rs.2,500 billion)
* Farm debt worth Rs.65,300 crore (Rs.653 billion) waived
* Government will continue to provide additional subsidy to farmers
* Corpus of Rural Infrastructure Development Fund hiked to Rs.14,000 crore (Rs.140 billion) from Rs.5,500 crore (Rs.55 billion)
* Outlay for higher education hiked 900 percent for 11th Five Year Plan
* Country's social security net will be strengthened
* Record foreign direct investment of $32.4 billion attracted
* Global economic situation not encouraging
* Extraordinary situation merits extraordinary measures
* Need to consider additional fiscal measures in regular budget
* Financial sector reforms need to be accelerated
* In past three years, India grew by average of over 9 percent
* Per capita income expanded by 4.7 percent per annum
* Fiscal deficit was brought down from 4.5 percent to 2.7 percent
* Revenue deficit was cut from 3.6 percent to 1.1 percent
* Exports increased 26.4 percent per annum
* Foreign trade increased from 27.3 percent to 35.5 percent
* Tax to gross domestic product ratio expanded by 9.2 to 12.5 percent
* Agriculture grew by 3.7 percent per annum


Last year's financial highlights:

In past three years, India grew by average of over 9 percent
Exports grew at average annual growth rate of 26.4%
Gross domestic saving rate at 37.7%
Domestic investment rate at 39% in FY 08
Per capita income increased 7.4% per annum during the UPA govt's tenure
The GDP went from 7.5% in 04-05 to 9.7% in 06-07 and clocked 9% in 08
Fiscal deficit was brought down from 4.5 percent to 2.7 percent
Revenue deficit was cut from 3.6 percent to 1.1 percent
Foreign trade increased from 27.3 percent to 35.5 percent
Tax to gross domestic product ratio expanded by 9.2 to 12.5 percent
Agriculture grew by 3.7 percent per annum

ICAI wants 6 mths to determine PwC's involvement in Satyam

The Institute of Chartered Accountants of India (ICAI) has announced that it will take six more months to determine the extent of the involvement of the company's auditor in the Satyam fraud.

Uttam Prakash Aggarwal, President, ICAI said that whether the auditors (PriceWater House Coopers) are guilty of falsifying accounts or not will become clear as soon as the investigation is completed.

"The fact as to whether the auditors were innocent or whether they were negligent or in the worst case scenario, they were hand in glove with the chairman in falsifying the accounts. We will no doubt come out with the investigation being done by several agencies including the disciplinary mechanism of the ICAI," said Uttam Prakash Aggarwal.

Meanwhile, L K Advani, senior leader of Bharatiya Janata Party (BJP), termed the Satyam fraud as a 'government scandal' and demanded a judicial enquiry into the country's largest corporate scam.

Advani said that a CBI probe was insufficient and a judicial probe was needed into the case for the truth to be known.

"It is not a corporate fraud. It is a Governmental scandal. Therefore, no CBI enquiry is necessary. A judicial enquiry is needed. A commission of enquiry is needed in the scandals in Andhra which has given you also a bad name otherwise the corporate sector did not have a bad name before Satyam," Advani said.

Andhra Pradesh police had arrested Satyam founder Ramalinga Raju and others in connection with the rupees 7,800 crore accounting fraud in Satyam Computer Services Limited.

Subsequently, Andhra Pradesh Chief Minister Y S Rajasekhara Reddy had recommended a CBI probe into the fraud.

Ramalinga Raju, his brother Rama Raju, former Chief Financial Officer Srinivas Vadlamani are currently held in a jail in Hyderabad.