'We will zero in on bulk of high spenders' : Chidambaram

New Delhi, Mar 20: Finance Minister P Chidambaram today told the Rajya Sabha that the authorities were aware of the identities of spenders with high income and will zero in on them to bring them into the tax net.

Replying to the discussions on the Appropriation Bill (No 3), 2006, authorising payment and appropriation of certain sums from the Consolidated Fund of India, Mr Chidambaram said he shared the concern of Mr B Janardhana Poojary (Congress), and was not at all happy at the situation where only 80,000 people in this country had a proclaimed income of over Rs 10 lakhs.

''I and every one of us know that there are 80,000 people in South Delhi alone. Even small towns like Chandigarh or Jalandhar towns have more people with such income who don't pay taxes. It is shocking... we will reach bulk of these people,'' he remarked.

The Finance Minister said he had asked the banks to furnish the names of people undertaking high cash transactions and the government had conducted a survey about the seven identified items and people who were dealing with such premium goods and each one was notified with a polite letter. ''Some have responded and those who have not, would be getting stern statutory notices,'' he said, pointing to the efforts to net in these people through newspaper advertisements.

He said the results of all these exercise will be known by March 15 when the advance tax payments of the personal Income Tax are to be made.

Turning to cooperative lendings, Mr Chidambaram said the government had already announced Rs 14,500 crore package for the revival of these banks based on the Vaidyanathan Committee report. ''I have spoken to the Chief Ministers about the issue asking them to sign MOU assuring special audits, regulations and legal processes to set the houses in order and carry out the restructuring of the cooperatives,'' he said.

''Once they sign the MOU, the government will be posing it before the Asian Development Bank and will talk to the World Bank for providing the funds for restructuring the cooperatives back to health. There is no justification for the present structure where each lending agency adds 1.5 per cent of interest. At this rate you will not be able to lend at seven per cent unless you set your house in order,'' he said.

Asking the Rajya Sabha Members not to worry about the removal of around 46,000 crore subsidies for food and fertilisers, Mr Chidambaram said these subsidies were merit based and they will continue to help the poor, needy and farmers. However effort will be made to reduce non-merit subsidies and make it target oriented. The other concern was that the cost of delivery of subsidies should not exceed the cost of subsidy and reduce non-plan expenses.

He also said there was no question of avoiding the payment to the National Rural Employment Guarantee Scheme because any person posing himslef as the lone bread earner in the family has to be statutorily provided with 100 days of employment. The money for this scheme or any other rural development involving health, drinking water or any schemes will be released as per the needs.

''We can revisit these figures as and when required,'' he said.

Responding to suggestions for higher allocations, the minister said there was no point in higher allocations as it would depend upon the capacity of the state governments to absorb funds available with various Departments and Ministries.

He said the allocations for various Scheduled Caste and Scheduled Tribes welfare scehemes had been enhanced to Rs 14,092 crore from Rs 11,040 crore. It was wrong on the part of members to assume that this money is inadequate in comparison to their population figures. One should not forget that they are also beneficiaries of other government spendings, he said.

The R S returned the Bill through a voice vote after the Finance Minister's reply.

UNI