New Delhi: As the Finance Minister P. Chidambaram has to present the interim budget in Lok Sabha, government have fear of disruption by the MPs over the creation of new state Telangana.
Notify that railways minister Mallikarjun Kharge had to cut short his speech last week because of protests over Telangana.
Meanwhile 16 MPs have been suspended from Parliament but the fear is that some other lawmakers, including Congress ministers, could interrupt Chidambaram.
One Delhi Metro stations will remain closed from 9am as a precaution against Telangana and Seemandhra protesters outside Parliament.
Udyog Bhawan will remain completely shut. Central Secretariat will allow interchange of lines and controlled exit, no entry though. Race Course, however, will remain open unlike what was reported on Sunday night.
Report claimed that Chidambaram could just table the budget and give his speech on Lok Sabha TV if Parliament is disrupted.
Meanwhile the report has been rejected by Rajiv Mishra, the CEO of Lok Sabha TV.
Mishra said, “The news report is utterly false. We have made no such arrangement. In fact there is no interview scheduled with the finance minister either because this is a vote of accounts.”
Chidambaram is scheduled to start his budget speech in Parliament at 11am. He will likely steer clear of making any pre-poll populist announcements. He could announce minor changes in indirect tax rates of a few goods and services, and also withdraw the so-called ‘super-rich’ tax of 10% surcharge imposed last year on those with annual taxable earnings of Rs. 1 crore.
The finance minister could also announce a cut in customs duty on gold by two percentage points to 8%, signalling a staggered unwinding of the curbs on bullion imports imposed to contain a free-falling rupee and a widening current account deficit (CAD).
The finance minister is widely expected to articulate the need for unwavering focus on fiscal discipline even in a poll-bound year, given the delicate state of public finances.
The UPA government’s last budget comes at a time when the economy is struggling to claw out of a crippling slowdown. India’s gross domestic product (GDP) — the total value of goods and services produced in the country— is set to record sub-5% growth for two consecutive years.
Notify that Finance ministers usually avoid making any big changes in income tax rates and slabs or announcing major programmes during an interim budget, leaving it to the Lok Sabha to ratify changes in tax laws.
Along with the interim budget, which will likely list out details of the UPA regime’s social and economic achievements, the finance minister will also present a vote on account to enable carrying out regular expenses till a new government assumes office after the general elections.
Chidambaram indicated that he may tweak excise duties and service tax rates in the interim budget earlier this month, but may stay away from key reform legislation due to lack of political consensus.
Bureau Report
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