New Delhi: A day after presenting the Budget, Finance Minister Jaswant Singh on March 1 said he will consider abolishing long-term capital gains tax totally if the difficult war-like situation in Iraq and drought condition in the country eases.

"There are constraints in managing the economy, because of the uniquely combined challenge of drought situation, war like situation in Iraq, crude oil prices soaring to $ 35 a barrel and recalcitrant neighbour," he said adding if the situation improves, "I can redraft (abolish) it".

The capital markets are depressed not only in India, but also globally and in such a situation he did not want to fully abolish long term capital gains tax at this juncture, Singh said.

However, he would consider when the constraints ease and the economy starts looking up, Singh told the captains of industry at the Federation of Indian Chambers of Commerce and Industry's (FICCI) post-Budget interactive session.

On the demand of the Industry that Life Insurance Corporation's (LIC) pension schemes announced in the Budget be opened to private insurers as well, Singh said he would consider it.

Admitting that the fiscal situation was "worrying", Singh said the Budget has attempted "a balance of fiscal responsibility. We cannot continue with revenue profligacy."

Listing out the salient features of the Budget, Singh said debt management was another area where far-reaching steps have been taken.

The measures announced would help debt swap of at least Rs 83,000 crore of states' debts, besides Rs 40,000 crore repayment of high cost government securities of banks, which were in a way non-performing assets, he said adding these, together with prepayment of about $ three billion of Asian Development Bank (ADB) and World Bank loans early this week, would improve the debt situation.

Terming as "revolutionary" the health scheme proposed in the Budget, Singh said with payment of Re one per month, every citizen of the country could be assured of medical facility.

He said government was unable to apportion more resources to improve medical facilities, due to paucity of resources and the scheme would help in finding the money necessary to run government hospitals.

Under the path-breaking scheme, citizens of the country would be able to avail medical facility in select government hospitals, he said, adding the government hospitals currently starved of funds would become self-financing.

Of course, improved facilities in government hospitals would not come overnight, he added.

PTI