Rejecting criticism that General Budget was not bold and he lost the opportunity, finance minister Pranab Mukherjee on Sunday suggested his critics to look at ground realities in the political sphere. He also said that any reduction in subsidies and hike in petroleum product prices could be considered only after consultations with allies.
In his customary post-Budget interaction with industry leaders, Mr Mukherjee said, “... Knowing the mood of the persons who matter here (in Parliament), I had to be extra careful and I had to make my colleagues extra careful. Therefore, many of things which could have been done, rather should have been done, could not be done just at the time of the Budget.”
The finance minister also pointed out that the policy shifts among political parties are taking place quickly. He said, he had to keep in mind the prevailing ground reality that a “decision taken in one House is reversed or changed within 24 hours, when the same proposal approved by one House comes to the other House”. The UPA coalition, which has difficult partners like Trinamul Congress, does not have a clear majority in the Rajya Sabha.
Mr Mukherjee said the government would have to take the issue of rising fuel subsidies head on with the support of political parties and the state governments. “I am putting this question bluntly in respect of fuel subsidies ... Can a country afford to import 100-120 million tonnes of crude (at high) prices? ...
That very question is looming large... We shall have to collectively address this issues,” he said. Later in an interview to a news agency, he said, “Budget is also a political document in the sense that it requires the approval of Parliament.” He also added that if budgetary proposals do not receive approval of coalition partners it becomes difficult to implement.
Pointing out that it was not possible to consult allies before the budget because the proposals were confined the Prime Minister and the Finance Minister only, Mr Mukherjee, said, wider consultations, however, were possible only after the presentation of the budget and “we shall have to take various stakeholders on board”.