July 3 or 8 likely dates for Budget

The UPA government is all set to showcase its reforms programme in the 2009-10 Budget early July, it is learnt.

The forthcoming Budget will be the first instrument for the UPA government to initiate the economic reforms it wants to, it is learnt. "Without the Left pressure, this government can announce bold reform measures, and some of that could be seen in the Budget," a government official pointed out.

While the new government's effort will be to present the Budget on July 1, the process may take a little longer, according to sources. The two possible dates that are being talked about for the Budget are July 3 and July 8. Strictly speaking, the validity of the interim Budget, presented earlier this year, is only till June 30.
Interestingly, this will be the seventh continuous Budget (including the interim) by the UPA government.

The Department of Revenue in the finance ministry has started the Budget exercise already, including interactions with the industry. However, the policy areas of the Budget will have to be specified by the new government.

Even as Pranab Mukherjee was holding the dual charge of external affairs and finance ministry at the time of the Interim Budget, now the new government wants to appoint a full-time FM. Deputy chairman of the Planning Commission Montek Singh Ahluwalia's name is doing the rounds for the post of the FM, but Mukherjee is also a likely candidate for the portfolio.

After the swearing-in of the government on June 21 or 22, it will take the new regime over a month to put in place the full-fledged Budget document. Recently, every ministry was asked by the PMO to identify areas of significance as well as pending issues. Some of the inputs, from across ministries, may also be included in the Budget.

Also, a 100-day action plan is being drawn by the government, to focus on pushing up the growth rate back to 9% after last year's decline, a government official indicated. It is likely to include targets on productivity, disinvestment and financial sector reforms.

Infrastructure would be a priority area for the new regime, covering sectors such as power, railways, roads and aviation (including airport development). A higher resource allocation for the UPA's dream scheme, Bharat Nirman, is also not being ruled out.
In a series of meetings with finance ministry officials, industrialists have demanded reduction of the highest personal income tax rate by 5% to 25% in the Budget to boost consumer spending and revive the industry. Business chambers including Ficci have also sought fiscal reform measures to push investment-led growth.

The UPA government had tabled the interim budget in February.

via DNA