All fiscal plans need to be part of a comprehensive and credible medium-term strategy, with an emphasis on expenditure restraint and a growth-oriented restructuring of expenditure. Another area in which we have seen insufficient progress over recent years is that of structural reforms. While some initiatives are under way, more needs to be done to address structural rigidities in the labour and product markets.
The IDFNBFC can raise resources through issue of either rupee or dollar denominated bonds of minimum five year maturity. IDFs are expected to channelize funds from insurance companies, pension funds and other long term sources into infrastructure sector. This will provide an alternative source of foreign currency funds for the infrastructure projects.