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Journalism of Courage
Having already given a go by to many customary practices, minister of finance and company affairs Jaswant Singh, is gearing up to present a low-key budget and not use it as a vehicle for announcing major policy initiatives like his predecessors. The minister is also not likely to do away with tax exemptions, as advised by Dr Vijay Kelkar, advisor to the finance minister, but will tread carefully keeping in view the assembly elections in several states.
Singh, who refrained from organising the traditional economic editors’ conference and customary pre-budget consultations with various interest groups, has already indicated his mind to the core budget team in the finance ministry.
Ministry officials engaged in the budget-making process said that Singh is against overloading of budget with too much of economic policies. “The minister wants to continue discussions and announce decisions on economic policies throughout the year,” said a senior official adding that “the budget for 2003-04 will be devoid of usual drama and fireworks on policy issues”.
In fact, the finance ministry’s mid-year review has already outlined the broad policy directions on key issues. The review also said that the aim of the whole exercise was to make policy formulation as well as monitoring a continuous effort, rather than a once-a-year event.
In his letter to about 150 individuals from different pressure groups including captains of industry and economists, seeking suggestions for the forthcoming budget, Mr Singh has stated that their inputs on policy issues were welcome other than the budget time as well. He has further said that the government is moving towards opening up the budgetary process and making it more transparent. “The release of consultation papers on direct and indirect taxes, as well as the mid-year review, were steps to encourage informed public debate on issues confronting the economy,” he has pointed out.
Officials said that the focus of the budget 2003-04 will be on the tax proposals. On this front, the minister has the key job carved out for himself. According to Singh, “the job for a minister is to strike a balance between the two equally justified demands.” More than the two consultation papers and subsequent reports of Kelkar panel, it is the criticism of proposals which will weigh heavily with Singh while formulating the proposals for his first budget.
