What Pranab will not say in his budget - Pre Budget

[janakmalvi]

I rise to present the budget for 2010-11. Historically, budgets have had massive fiddles to cloak the true fiscal deficit-by pushing the


government’s own borrowing requirements into the books of oil marketing companies, fertiliser companies and the Food Corporation of India. Smoke and mirrors was used by my predecessor to claim that he would cut fiscal deficit to 2.5% of GDP in his 2008-09 budget.

In fact, the hidden borrowing requirements added up to another 2% of GDP. Let me confess that my last budget used the same smoke and mirrors, despite which it projected a fiscal deficit of 6.8% of GDP. But from now on, the budget will itself provide in full for all the subsidies dished out by public sector corporations.

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