We now have a credible disinvestment programme. During the course of this year there will be a significant disinvestment of some major companies covering the sectors of oil, telecom, airlines and hotels. The resources realized would be mainly utilized to retire debt or meet social sector obligations. The Cabinet Committee on Disinvestment under my Chairmanship has been activated to achieve tangible results with definite milestones. In sharing my thoughts on many of these issues I do not want to gloss over difficulties.
Serious problems do exist in many areas, particularly long-term fiscal management.
While our tax rates are internationally competitive, tax administration needs significant improvement. Tax reforms also require urgent attention and the Double Taxation Treaty needs to be revisited. Government expenditure needs to be pruned. Sustained action in this area is planned on the basis of the recommendations of the Expenditure Commission. The Fiscal Responsibility Act before Parliament would reinforce these measures.