Expect grand statements, nothing more from interim budget: Expert

New Delhi: Senior journalist and economic policy expert Vivian Fernandes expects that the outgoing government may make some grand statements of intent during the presentation of Vote on Account on Monday. He feels that the government will always use the opportunity to present its view especially since it has the nation's attention.

Question: It is a lame duck government and the budget is also interim one. Does it really matter?

Vivian Fernandes: The interim budget is actually a vote on account. The purpose is to obtain Parliament's approval for expenditure necessary to keep the government functioning till the next government passes the budget. As you know Parliament gives approval for expenditure one year at a time.

Question: Is the Finance Minister P Chidambaram going to present a please all budget keeping LS polls in mind?

Vivian Fernandes: P Chidambaram has said that he is going to provide comfort on indirect taxes. He cannot do anything on direct taxes as that requires approval of parliament for the finance bill. Indirect taxes can be changed any time. Jaswant Singh had done that in January 2004, ahead of his Interim budget in February.

Question: According to poll surveys, the Congress is staring at a huge defeat. Will it have any impact on the budget?

Vivian Fernandes: If the Congress is staring at defeat, it might try to mitigate the impact though the interim budget. But the scope is actually limited. Even if it is tempted, there is the question of propriety. It also does not have the numbers to get major concessions approved.

Question: What are you expecting from it?

Vivian Fernandes: P Chidambaram might make grand statements of intent.

Question: FM sources say the fiscal deficit numbers will be surprising. How?

Vivian Fernandes: The fiscal deficit target of 4.8 per cent might be met by rolling over subsidies like in the past.

Question: Do you expect a major boost after the LS polls?

Vivian Fernandes: It depends on who forms the next govt. If it is Modi, certainly there will be a big bounce. If it is the third front, sentiment will collapse. It happened in 2004. Sitaram Yechury said the CPIM would not allow disinvestment. The market slumped.

Question: Is not interim budget a mere ritual? Should not the government just lay the papers on table instead of presenting it?

Vivian Fernandes: The vote of account is not a ritual. It is a necessary thing. But governments will always use the opportunity to present their view especially since they have the nation's attention.