No problem in presenting Budget in time despite polls, says Pranab

Finance minister Pranab Mukherjee said on Sunday he did not think there was any problem in presenting the 2012-13 Budget on schedule in the wake of the announcement of Assembly elections in five states.

“The Union Budget is usually presented on the last date of February. Next year being a leap year, the Budget is likely to be placed on February 29. Elections to all state Assemblies, except in Goa, will be over by that date. So, I don’t think there will be any problem,” he said.

Mukherjee was responding to a question whether presentation of the General Budget would be deferred in view of elections. He, however, said the date for presentation of the Budget would be fixed after discussions at various levels.

Meanwhile, a senior government official told Business Standard there had been discussions in the finance ministry on looking at options of the Budget presentation at a later date. Dates for presentation of the Railway Budget and the Economic Survey, which precede the General Budget, might also be reworked accordingly, according to him.

The finance ministry’s meetings for this week on Budget preparations had been postponed, keeping in mind the possibility of extension of the Budget date.

The Election Commission yesterday announced the dates for the Assembly polls in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa — which will start on February 4 and end on March 3.

Finance Minister Pranab Mukherjee will hold brainstorming sessions with various stakeholders during his annual pre-budget meetings beginning January 11.

The first meeting would be with agriculturalists, followed by a series of interactions with sectoral experts, representatives, industry captains and economists over the next 10 days to get their feedback and inputs for incorporating them in Budget 2012-13. Mukherjee is then slated to meet captains of industry on January 13, followed by trade union leaders on January 16.

The minister is expected to elicit the views of several interest groups on arresting the economic slowdown and combating the impact of global problems. The current fiscal has been a difficult year for the country’s economy, with growth slipping to 6.9 per cent in the second quarter this fiscal, the lowest in nine quarters.

Social-sector-related groups will share ground realities faced by them with Mukherjee on January 17. There will be a meeting with CEOs of banks and financial institutions on January 19.

The pre-budget exercise will end with a discussion with economists on January 20.

Issues such as bank recapitalisation, access to affordable financial services — especially credit and insurance — and interest rates are likely to be discussed in the meeting.

The pre-budget exercise will end with a discussion with economists on January 20. A wide range of issues — including policy initiatives to fight sluggishness in growth, slump in industrial output and rising fiscal deficit targets — are likely to come up for discussion. Moreover, impending tax reforms like Direct Taxes Code and Goods and Services Tax may also figure in the discussions.