FM asks states to support pension, banking, insurance Bills

New Delhi, Dec 9 (UNI) Finance Minister P Chidambaram today sought the support of state Chief Ministers for an early passage of the Pension Fund Regulatory and Development Authority Bill, the Banking Regulation (Amendment) Bill and a comprehensive law on insurance for financial sector reforms for mobilising resources.

He also called for paying special attention to the delivery of services in the areas of primary education, healthcare, drinking water, sanitation and roads, and a ''courage to revisit'' subsidies as these had failed to reach the targeted beneficiaries.

Addressing the 52nd meeting of the National Development Council (NDC), Mr Chidambaram recalled Prime Minister Manmohan Singh's opening remarks on the need for a strong and innovative financial sector in mobilising resources, and said some steps in this regard can be taken through executive action.

''However, major legislative changes are also required for this purpose,'' he told the NDC meeting on the Approach Paper to the 11th Five Year Plan.

Pointing out that the government had identified three pieces of legislation which were in different states of consideration, he urged the Chief Ministers to ''extend full support to the passage of these laws at an early date''.

He said the governments in the past had failed to pay special attention to the delivery of services and hence the intended benefits had not reached the targeted beneficiaries.

''Primary education, healthcare, drinking water, sanitation and roads are goods and services that must reach the people,'' he said and added that subsidies too had failed to reach the beneficiaries because of poor delivery.

''We must have the courage to revisit subsidies and how they are delivered,'' he added.

He urged the states to come forward to work with the Centre in implementing ideas such as food stamps and smart cards on a pilot basis.

''If an idea succeeds, it can be scaled up and implemented nationwide.'' He also stressed the need to be careful about having too ambitious programmes of grants and subventions in areas that were essentially within the domain of the states.

''It is critical that the states not only implement the programmes that belong to their domain, but they also participate financially and develop ownership of these programmes.'' UNI YJ VD GC1934