When I was the FM

RUN UP TO THE BUDGET 2004-05/ ND TIWARI - Presented Budget in 1988

"For us socialism is not dead. It is not a foreign transplant. It is not cast in someone else's ideological mould. It is rooted in our own history, our culture, our real time."

N.D.Tiwari 1988-89 quoting Rajiv Gandhi
while presenting the Budget

What was the moment of triumph when you presented your Budget?

My Budget left the Opposition wondering if elections were round the corner. When I started announcing the tax proposals, a member said, "Hamari jeb ka dhyan rakhiyega (Please take care we are not taxed)." I remarked, "Yeh dost, bata dun kya fark tujhme mujhme, tera dard dard-e-tanha, mera dard dard-e-jamana."

Meaning, you are worried only about yourself, I have to worry about the entire nation. Nevertheless, I raised the standard deduction rate from 30 per cent to 33.33 per cent and the ceiling from Rs 10,000 to Rs 12,000 to benefit about a million tax-payers.

My guiding principle in the Budget was the need to boost agriculture, help the poor and generally, more employment, investment and growth.

What were the most trying moments?

There were no trying moments. My Budget was very popular. It was greatly acclaimed. There were as many as 88 applauses when I presented the Budget. You must read the newspapers of my Budget days. People had counted the number of times members thumped the desks.

What role did the Prime Minister's Office play?

There is a tradition that the finance minister takes an overall brief from the Prime Minister. He also discusses the main issues to be dealt with once before finalisation of the Budget.

When I was the finance minister, Rajiv Gandhi was the PM. The Prime Minister's Office, per se, did not play any role. Gandhi had directly spoken to me and listed the priorities, all of which were addressed by my Budget. Embellishments were made to the brief that I received from Gandhi.

Were the markets and corporates fair in their assessment of your Budget?

They were very fair. The Sensex shot up after I presented the Budget. In fact, the Sensex went up as soon as I became the finance minister after being the country's foreign minister.

In my Budget, for exports, I enhanced the tax concession under Section 80 HHC to exempt 100 per cent of export profits from income-tax. I had also announced tax concessions for small investors for investment in special units of mutual funds, where the resources were earmarked for investment in new projects.

What will be your priorities were you to present the Budget now?

I will make all the efforts to give a financial picture to the United Progressive Alliance's common minimum programme.

The CMP addresses all the issues relating to health, education, agriculture and employment. It has the right focus and I would have endeavoured to incorporate the CMP priorities in the Budget.