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Govt may go for interim budget in Jan-end or early Feb
January 07, 2004 20:20 IST
Last Updated: January 07, 2004 20:40 IST
With the National Democratic Alliance government virtually deciding to go in for snap polls, preparations are afoot to present an interim budget, instead of a full budget either in January end or early February.
The finance ministry, though tightlipped on the issue, has quietly sent letters to various ministries to ascertain their financial requirements for the first three months of next fiscal (2004-05).
Several ministries had confirmed of receiving such letters.
The interim budget is likely to be something a little more than a vote-on-account which only provides for appropriation of funds from Consolidated Fund of India for governmental expenditure in the first few months of the new financial year.
The interim budget is likely to contain an economic package, particularly for rural development and farm sector, apparently with an eye on the Lok Sabha elections and to sustain the growth momentum -- particularly in agriculture -- after a good monsoon this season.
The Bharatiya Janata Party national executive, to be held in Hyderabad on January 11 and 12, would adopt an economic resolution which would outline an economic package, which is expected to be reflected in the interim budget.
Some of the reform measures including a comprehensive legislation on special economic zones, could not wait until next elections for the government to act upon.
The interim budget may contain the necessary tax sops to such entities.