NEW DELHI: India’s union budget for 1991-92 will be presented to Parliament by the finance minister, Dr. Manmohan Singhon July 24, according to the tentative schedule.

The economic survey, a virtual white paper on the state of the economy, is expected to be presented on July 22.

The new Congress-I government will also seek a vote on account for sight weeks beginning July 31 to meet the expenditure tll the passage of the finance bill, giving effect to the budget proposals, sometime in September.

The previous Chandra Shekhar government had also soughta vote on account for four months expiring on July 31.

According to convention, the railway budget for 1991-92 would precede the general budget exercise and is likely to come up in the third week of July.

The first session of Tenth Lok Sabha is scheduled to begin on July 10 and in the first few days the 500 odd new members would take oath. This would be followed by the president’s address to the joint session of Parliament. The Narasimha Rao government would also seek a vote of confidence before the two houses take to serious legislative business, including the budget.

Dr. Manmohan Singh who assumed office on June 24 has already started in-depth discussions with the senior officials of the ministry in the formulation of the budget so as to complete the exercise well in time.

Prime minister P V Narasimha Rao, had already stated that putting the economy back on the rails would be the top priority of the new government.

He had made it clear that there were no soft options left and thereby indicating that harsh measures were in the offing in the budget to retrieve the economy.

The mounting budgetary deficit year after year was the main corner of the government. It had gone far beyond the revised estimates for the year pushing up the fiscal deficit.

The fiscal deficit for 1991-92 is now estimated at8,7% of the gross domestic product against a projected 8.5%.

The government had already given a commitment to the international monetary fund that fiscal deficit would not exceed beyond 6.5%.

If the government had to check the budgetary deficit which had cumulatively soared to Rs480, 000 million over the last few years, it would necessarily have to take some unpopular decision on cutting down subsidies.

The major drain on the government exchequer was subsidies on food, fertilizers and export promotion. Defiance expenditure which touched about R.s 150,000 million last year would also have to be curtailed to reduce government expenditure.

The budget would have to Clearly incorporate policies which would facilitate the negotiations on getting an IMF loan.

Article extracted from this publication >> July 5, 1991