New Delhi, March 1
When are the elections and is this an election budget ? These were the questions on everybody’s mind when they read the Budget presented by the Finance Minister P. Chidambaram yesterday.
It is the fourth budget of the UPA government and there are sops for almost everyone, the middle class people, farmers, students, senior citizens, budding corporate executives etc. The Tribune asked the FM as to what really was on his mind while making the budget?
Excerpts from the interview:
Do you think more needs to be done for the farming community and has the UPA government been able to meet the needs of farmers?
We are not satisfied with what has been done so far. We have dealt with issues like water management, irrigation, seed development, better minimum support price and now debt relief for farmers. Even though farming is a state subject, yet the states have looked up to the Centre for most of their needs whether it is farming, education or irrigation. But the outcome is not satisfactory and more needs to be done.
The common man says that prices have increased during the UPA government’s regime and a slogan that is being repeatedly heard is “Congress ki sarkar, mahengi sarkar”?
The prices of foodgrains and other commodities have increased all over the world and the question is whether these prices are tolerable or not? In my view the incomes have also risen by almost 7.2 per cent in the past four years. There is a problem, not as much with the supply but with managing the supply and this bottleneck is being addressed by the food minister.
The government has been issuing oil bonds in the wake of rising crude oil prices and someday the children will have to pay for these bonds when these mature in say 20-25 years. Is this a good solution to deal with an issue like this?
You can’t raise the fuel prices, you can’t raise the LPG prices, are people ready to pay more? All the polls conducted by us show that people are not ready to fork out more for fuel. So there is no option but to issue bonds.
There are fears that the stagflation in the USA will stem the flow of foreign investments to the country?
Well, if that happens it is good for the rupee appreciation and not much needs to be done as regards the measures that need to be taken to stem the flow. As regards stemming the capital flows using fiscal measures, I am not contemplating any taxes on fund flows, I have not even thought about them. But if there is profuse fund flow, then maybe we will take temporary measures to stem the flow.
If the UPA returns to power and you are once again the finance minister then what would be the items on your unfinished agenda?
Well that’s a good supposition to have that we are back in power. No agenda can be finished in a country like India, I would look at full employment, poverty reduction and elimination of inequality.
