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COVER STORY: UNION BUDGET
INTERVIEW: YASHWANT SINHA
"It is my budget, Not the PMO's"
 Basking
in the glory of the post-budget euphoria, Finance Minister Yashwant Sinha
was a different man from the unsure "rollback" minister of the
past. He met INDIA TODAY over two sessions to explain why he is sure of
keeping the tough commitments he has made in his fourth budget speech.
Excerpts from exclusive interviews with Editor Prabhu Chawla and Associate
Editor Rohit Saran:
Q. The 1997 budget, which was hailed as a dream
budget, belied all hopes after the fall of two governments that year.
It is feared politics may prevent the implementation of some of the best
proposals in this year's budget.
A. From the reactions that have appeared in the media, the NDA allies
are fully with us, though the Opposition is making the usual noises. In
the Rajya Sabha we don't have a majority. If the Congress decides that it
would not allow any progressive legislation to go through then clearly there
will be a problem. We are hoping to build a consensus and persuade the Congress
to support policies to which it was wedded not only when it was in the government
but also till as recently as 1999 when its manifesto talked of many of these
reforms.
Q. So you are sure of the allies' support
even on proposals like labour reforms and privatisation?
A. Let me make one thing clear. Opposition parties will try to take
political advantage. We shall reason with them, we shall argue with them,
we shall try and build consensus with them. At the same time we will like
to reach out to the larger constituency outside-the people. Public opinion
outside does influence the behaviour of political parties in Parliament.
Look at the recent assembly bye-elections. Political parties went around
with the propaganda that agricultural prices were down because of imports,
which is incorrect. But it did not cut ice with the voters. Ultimately,
good economics is also good politics and certainly bad economics is not
good politics.
Q. The subsidy bill has shot up by over Rs
10,000 crore in two years. Why couldn't you bite the bullet on reducing
subsidies?
A. Every previous government has thought of dealing with subsidies
in one way-reducing them-thus raising prices, taking political flak and
ending up in failure. I decided to do a policy shift both with regard
to fertilisers as well as food subsidies.
Q. You had to roll back some proposals in
earlier budgets. Will there be rollbacks this year too?
A. Well, as far as the 1998 Budget was concerned, there were a lot
of roll backs. In 1999 there were none. In 2000, there were a few rollbacks.
Q. What is the basic growth trigger in your
budget, higher consumer demand or more investment?
A.
Both. By reducing taxes, I am trying to propel consumer demand. Through
measures like lower interest rates and promotion of infrastructure, I
should get higher investments.
Q. Are you sure that banks will reduce their
lending rates?
A.
I have created the environment for low-lending rates by reducing interest
rates on small savings and keeping the government deficit down.
Q. The success of many budget proposals depends
on the cooperation of other ministries and states. Doesn't that render
the finance minister less in control of his budget?
A: The finance minister presents
the budget on behalf of the whole government and it must be looked at
as a national document. So it must set out the policy which the country
would follow in the next 12 months.
Q. So the labour minister has no problems
with the proposed reforms.
A.
No. I have had discussions with the prime minister, my colleagues and
the group of economic ministers.
Q. Some people are claiming that this is
a PMO budget, not yours.
A.
No, it is my budget. It has been prepared under the guidance of the prime
minister, not the PMO.
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