With a financial burden of Rs 117 trillion, Prime Minister Deve Gowda rules out welfare schemes in Budget

Prime Minister H D Deve Gowda has indicated that the United Front government would not be in a position to undertake any large welfare schemes in view of the staggering financial burden placed on it by debt servicing, the burgeoning oil pool deficit and implementation of the fifth pay commission report.

Making a brief mention of the financial constraints at the UF steering committee meeting, the prime minister said the government has to formulate the Budget taking into consideration these constraints and the financial burden of Rs 117 trillion by next year.

His remarks assume significance as these come just before the presentation of the Union Budget on February 28.

According to the prime minister, the interest burden alone would mount to Rs 850 billion by March 1998. The oil pool deficit was expected to cross the Rs 200 billion mark if the government did not revise the prices of petroleum products.

If the pay commission's recommendations were implemented, Deve Gowda said the government would have to bear a burden of around Rs 120 billion if it was implemented in toto.

Many UF leaders wanted the Budget to be people-oriented and reflect the commitments made by the Front's common minimum programme.

A detailed discussion of the Budget will take place at the next meeting of the UF steering committee on Tuesday next, February 18. Finance Minister Palaniappan Chidambaram could not attend Sunday's meeting as he was away in Sivaganga, his constituency in Tamil Nadu.

In a major decision to institutionalise the core group within the steering committee, a eleven-member standing committee has been constituted, with a view to take policy decisions, on day-to-day affairs. Andhra Pradesh Chief Minister and Telugu Desam Party leader Nara Chandrababu Naidu, CPI-M general secretary Harkishan Singh Surjeet, Tamil Maanila Congress general secretary G K Moopanar, Tamil Nadu Chief Minister and Dravida Munnetra Kazhagam leader M Karunanidhi, Defence Minister and Samajwadi Party leader Mulayam Singh Yadav, CPI general secretary A B Bardhan, Assam Chief Minister and Asom Gana Parishad leader Prafulla Mahanta, Janata Dal working president Sharad Yadav and the UF spokesperson.

S Jaipal Reddy has been nominated the UF spokesperson, and an announcement will be made by the prime minister shortly.

The steering committee meetings also decided to meet in various state capitals on a rotational basis.