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'Non-Plan revenue expenditure must be contained'

Haryana today supported Centre's proposal to contain non-plan revenue expenditure including freezing of DA and bonus, but demanded a softer interest rate regime to bring down states' debt liability.

Addressing the CMs' conference in New Delhi chaired by Prime Minister Atal Bihari Vajpayee, Chief Minister Om Prakash Chautala said: "I broadly endorse the measures to contain non-plan revenue expenditure. I would suggest that the government should also keep the interest of the employees in mind while putting restrictions on grant of DA/bonus and on retirement benefits."

"This step by the government would help states to take follow up decisions in the intended directions," he said and pointed at the debt liability of the states, which had risen manifold and was becoming unsustainable.

He said the interest rates charged by the financial institutions like NABARD, LIC, HUDCO and government were very high and had become 'unjustified'.

"Interest rates need to be rationalised. Composition of formula based central assistance for non-special category states needs to be changed and portion of central loans used for investment in economic infrastructure like power and irrigation should be written off in appreciation of states' efforts towards central foodgrains pool and wide ranging power reforms," he said.

Regarding the debt-swap scheme, he said: "At present only 20 per cent of the small savings should be used for prepayment of high cost loans and subsequently possibility of enlarging the scope of the scheme to swap larger amount of high cost debt with low cost market borrowings be explored."

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