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Our Economic Bureau
New Delhi, Jan 15: Finance minister Yashwant Sinha has hinted at a basic floor duty for all imports in the forthcoming budget. This implies that concessions like zero-duty imports of select capital goods may be withdrawn.Speaking at a pre-budget meeting with representatives of the media - the first such exercise - Sinha said: "I think we should get used to the idea of some basic floor duty for all imports," while adding, "I have also been guilty of some distortions since I allowed duty-free imports of capital goods for mega power projects." Duty-free imports of capital goods are now allowed for various sectors.
The Government will also try to whittle down the number of excise-duty slabs to just three--basic, merit, and de-merit-in a bid to further simplify the tax structure.
"It is a difficult task, and maybe, we will end up with four or five," he said. "But our endeavour will be to keep it to the minimum," he said, responding to suggestions of the economic editors on what should be the thrust areas inthe budget.
He, however, did not indicate if further reforms were in the offing in respect of direct taxes like income tax and corporate tax.
Sinha also said that his budget would categorically say that the Government was in favour of economic reforms, and will not be apologetic about them as several previous Governments have been. "We are for reforms, and there is no reason to be apologetic about it. There's no question of bringing in reforms by stealth," he said.
Sinha said that he would try and end the practice of multiple exemptions in the excise and import structures, since "once you begin, there is no end to it". Of course, he admitted, this was easier said than done, as any change in excise was always followed by delegations lead by MPs suggesting all manner of changes.
Sinha assured the editors that the budget would take the reforms forward, ensuring that benefits also flow to the social sectors like education and health. "Amartya Sen or no Amartya Sen, we just have to spend more on socialsectors like education and health", he said.
Sinha said that the budget would also take a serious look at the agriculture sector, and try to lay out a roadmap for the future, which would help boost the rural economy. The finance minister shared the concerns of the editors over the drastic decline in exports, and said that the finance ministry would hold consultations with the commerce ministry and ask it to identify if there were any specific problems. The commerce ministry would be asked to identify the problems product-wise and market-wise so that corrective steps could be taken jointly, he said.
Sinha indicated that there would be many things to which the common man could relate to in the budget this year. "It is not my intention to sweep anything (their concerns) under the carpet," he asserted.
Budget on Feb 27 at 11 am
Finance minister Yashwant Sinha has decided that he's going to make a definite break from the colonial practice of presenting the union budget at 5 pm. Sinha's forthcomingbudget will be presented, according to finance-ministry officials, at 11 am, giving sufficient time for the media to understand its full ramifications. As February 28 is a Sunday, the budget will be presented on February 27. So far, all finance ministers have gone along with the practice begun by the British in pre-independence India.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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