The Union Minister
of Finance and Company Affairs, Shri Jaswant Singh has stressed
upon the need to redefine the role of governance and regulators.
He said that in free markets there is need for strong regulatory
mechanisms which are a combination of self governance and formal
rules. He said that the Government has already set in motion a
number of studies in this regard. The Minister was inaugurating
15th All India Conference of Chartered Accountants,
here today.
Elaborating on the
role of Government, Shri Jaswant Singh said that the basic job
of government is to create an enabling environment for public-private
partnership, link fiscal, monetary and other incentives to productivity
and streamline public investment and social welfare programmes.
He emphasized on greater consultations, monitoring of policies
and operations to strengthen institutional structures and legal
systems.
The Minister said
that, in this context, the responsibilities of professionals such
as chartered accountants was to ensure better corporate governance
and best international practices. He said that in the post reform
period, with less interference from Government, private and public
sector enterprises have more autonomy and responsibility and required
better assistance from professionals. With globalization and greater
competition, there was an increased risk due to fluctuations of
exchange rates, commodity prices and markets. He called upon chartered
accountants to help improve corporate governance through the development
of management information systems, asset liability management,
management of risk! , project appraisal and evaluation and prediction
of sickness. The Minister emphasized that the chartered accountants
have to perform their jobs without fear or pressures and need
to be more transparent in their accounting practices.
The Minister said
that a well governed State and orderly functioning of markets
are essential for high growth and sustainability. The Minister
emphasized the need for greater coordination, cooperation and
partnership between the private and public sectors. He stressed
that Government should withdraw itself from the sectors where
private participation is more productive and more efficient. The
scope of government remains largely in the social sectors and
infrastructure as the Government is the ultimate risk taker, he
said.
