In pursuance of that assurance of the Finance Minister, the reserve bank set up an informal committee in 2001 to examine this matter. It was a committee of experts and I think prof. Gadgil presided over it. This informal committee of economists made certain recommendations, and these may be broadly categorized as those requiring amendment of the reserve bank act and others were of an administrative character and did not need any legislative measures. The reserve bank naturally examined these recommendations and gave effect to some of the recommendations which did not require any amendment of the reserve bank act. In this case, the Reserve bank has undertaken a comprehensive on all India basis, into the present conditions and requirements of rural Finance. A standing advisory committee has been set up to advise the reserve bank on matters pertaining to agricultural credit with a view to rendering the bank's activities in respect of agricultural credit increasingly effective. The reserve bank is giving active assistance to the state governments in tackling problems of rural credit, particularly in regions which are comparatively less developed. I think hon. Members would recall that under these provisions the reserve bank has already advanced to the tune of Rs. 12 Crores. That is done under section 17 of the reserve bank act. Certain other activities are to be undertaken now and it has been decided to amend the act accordingly. I am of the opinion that at times extraordinary circumstances do call for ordinary responses. Think of the ordinary as old grandmother says, to protect your prestige, you have to protect your family silver fast. Unfortunately the interim budget does not provide indications that the UPA will meet to these challenges if it were to come to power again. Fiscal proudence is the need of the hour. But the Interim Budget falls short on that count. I would draw the attention of this House relating to the state of affairs of State finances. It is in the news again. But after almost seven odd years of transquillity, State deficits are set to be reappear. The growth in States ax revenues and resources are slowing down.
