NEW DELHI: “Aam aadmi” (common man) is to be the focal point,” of the budget that Finance Minister Pranab Mukherjee plans to present in the first week of July. Mukherjee referred to the Congress Party’s manifesto, which has proposed to increase minimum wages under the National Rural Employment Guarantee Act (NREGA) to Rs100 per day. The issue of providing food security would also be given top priority, Mukherjee said.
Referring to the need of a “stimulus package” needed to boost the economy, which has been affected by global meltdown, Mukherjee said: “Whatever is needed will be done.” While the government has announced three packages since December last, it has not taken any policy decision since March because of the Lok Sabha elections.
“We have identified issues and areas of concern that need to be addressed in this budget and will work closely with Prime Minister Manmohan Singh in presenting the first one,” Mukherjee said. “Adverse impact of the global financial crisis on our growth scenario may continue for a year or so, because financial situation and the crisis that prevailed from the middle of last fiscal year is not yet over and the sign of recovery in Europe and North America are not very visible. Therefore, these things will have to be taken into account while formulating our policies,” Mukherjee said. Problems in crisis-hit sectors like textiles, leather and gems and jewelry will be addressed in the budget, he pointed out.
On whether he prefers growth to fiscal prudence, Mukherjee said: “What is needed is stimulus to growth; we cannot indulge in fiscal profligacy.” It is his job as a finance minister to strike a balance between competing demands of different sections of society, Mukherjee said. “Every minister is prime minister’s minister,” he added.
Mukherjee is hopeful that 2008-09 economic growth will be close to assessment made by Central Statistical Organization (CSO), which estimated a growth rate of 7.1 percent, for previous financial year. In the current year, Mukherjee is “hopeful” of positive signs in the latter half. While capital inflow has started picking up steadily, though slowly.”
