Finance minister Yashwant Sinha has indicated that some amendments may be moved to the revenue proposals under indirect taxes when the Finance Bill is put to vote, or even earlier.
"We have received several representations in this regard and are processing them," he added, while replying to the general discussion of the budget in the Rajya Sabha.
The minister also reiterated the fundamentals of the Union budget for 1998-99 and maintained that the economy would achieve 6.5-7 per cent growth in the current fiscal without stoking inflationary pressures.
Commenting on the present downtrend in the stock markets, the minister said, "I won't say that we don't care about capital markets. We do to the extent that they behave in a responsible fashion. The fluctuations have been violent. No responsible capital market functions like this."
Sinha also defended the government's decision to close non-viable public sector undertakings. "Is there a point in carrying on with an undertaking which is unviable?" he queried.
Sinha claimed that the BJP-led coalition had inherited an economic regime which was not "in the pink of health". He added that reversing the economic slowdown was the primary focus of the budget.
"Most of us have been in government at some time or the other. Hence, we must assume responsibility for errors and commissions of the previous government," he said in his lengthy speech which lasted over an hour-and-a half. "It is not a clean slate that I got to write on," he quipped.
"I am not trying to apportion blame. But I can't be held responsible for the problems that existed before I took over," he added.
According to Sinha, the basic assumptions underlying the budget were justified and realistic. "I have assumed a growth in gross domestic product of 6.5-7 per cent. Is this a pie in the sky?" he said.
This, he said, was based on the assumption of growth in agriculture of 3-4 per cent (compared with a decline of 2 per cent in 1997-98) and an industrial growth rate (based on the new series) of the order of 8-10 per cent (6.6 per cent in 1997-98).
"The assumptions have to be made while preparing a budget. We can't prepare a budget based on the predictions of prophets of doom. The only thing is to guard against is whether the assumptions are over-optimistic," he said.
Defending the allocations for expenditure, Sinha said, "This government does not believe in controlling expenditure by squeezing sectors, which should not be squeezed."
Similarly, he defended the revenue assumptions claiming that the tax-to-GDP ratio worked out to 9.76 per cent in 1998-99 as compared to the trend average of 9.82 per cent in the Eighth Plan period.
"Among the various revenue categories only excise receipts can be challenged. But additional resource mobilisation has been done and the increase can be justified. Hence, tax receipts are not unrealistic," he said.
The minister also indicated that the revenue projections did not take into account the increase in collections due to enhanced tax compliance.
"The moves to ensure better compliance will make it difficult for anybody to evade taxes anymore," he said.
Sinha said the direct tax collections (but did not specify whether this was net of refunds) had grown by 25 per cent in April and May of the current fiscal year. "I am confident that the assumptions of economic growth and revenue would be achieved," he reiterated.
Commenting on the disinvestment target of Rs 5,000 crore for the year, the minister said, "I am not taking a potshot in the dark."
Responding to the criticism by some members of the house, Sinha said, "When something extraordinary happens in the year, then some of the projections can go wrong. I won't be the first finance minister to face this problem. And, these charges should be levelled against me next year," he said.
The finance minister also denied charges that budget was inflationary in nature and that the overhang of excess money supply in the system would accentuate these pressures. "True the wholesale price index has increased. But there is no cause for concern. All these are seasonal factors," he said.
"I do not think there is anything that would lead to the forebodings that members have warned about," he added.
The minister also pointed out that with output in East Asia had marred efforts to take recourse to imports of edible oils to dampen domestic prices.
To a large extent, the surge in prices of primary articles, he explained, was on account of inclement weather conditions affecting output.
The minister further said that there was no cause for alarm in the face of the economic sanctions imposed by the United States. "There is nothing more on sanctions then what we have in the budget. If there are harsher sanctions then the whole nation will stand together and jointly meet the challenge," he said.
Highlighting the initiatives undertaken by the government in agriculture, the minister said that the Kisan credit card would serve the additional task of drawing the farmer into the banking system.
Irked by criticism that he was anti-national, Sinha snapped back saying, "I reject the charge with the contempt it deserves."
